On the balance of probabilities if you own a flat in Appleton you actually own a long leasehold interest over your property
Leasehold properties in Appleton with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancing solicitors that we work with undertake Appleton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
18 months ago Leon, came precariously near to the 80-year threshold with the lease on his purpose- built flat in Appleton. In buying his property two decades ago, the length of the lease was of minimal importance. by good luck, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Leon arranged for a lease extension just under the wire last March. Leon and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If he had missed the deadline, the sum would have gone up by a minimum £1,150.
In 2010 we were e-mailed by Mr and Mrs. B Jackson who, having owned a one bedroom flat in Appleton in May 2009. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Identical homes in Appleton with a long lease were worth £295,000. The average ground rent payable was £45 collected quarterly. The lease concluded on 19 May 2100. Considering the 74 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.
Ms V Cox purchased a ground floor apartment in Appleton in October 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Identical properties in Appleton with 100 year plus lease were worth £243,000. The mid-range amount of ground rent was £65 billed annually. The lease concluded on 1 June 2089. Having 63 years outstanding we approximated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 plus fees.