When it comes to domestic leasehold premises in Appleton, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years left. Leasehold owners in Appleton with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. Once a lease has less than 80 years remaining, under the relevant statute the freeholder can calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Appleton with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
Lease extensions in Appleton can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Appleton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joshua owned a conversion apartment in Appleton being marketed with a lease of fraction over sixty years left. Joshua on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Joshua to exercise his statutory right. Joshua procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.
In 2012 we were contacted by Mr and Mrs. Y Gray who, having acquired a purpose-built flat in Appleton in January 2005. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative homes in Appleton with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease lapsed in 2101. Taking into account 76 years as a residual term we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.
Last Summer we were approach by Mr Finn Williams , who took over the lease of a basement flat in Appleton in September 1999. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Comparable premises in Appleton with an extended lease were valued about £252,800. The mid-range amount of ground rent was £65 collected every twelve months. The lease ran out in 2090. Taking into account 65 years outstanding we estimated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 plus fees.