Askam In Furness leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Askam In Furness enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Askam In Furness you must investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Askam In Furness with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Askam In Furness can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 in-depth market knowledge procuring Askam In Furness lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Blake, started to get near to the eighty-year mark with the lease on his garden flat in Askam In Furness. In buying his home 19 years ago, the unexpired term was of little importance. Fortunately, he realised he needed to take steps soon on Extending the lease. Blake arranged for a lease extension at the eleventh hour in January. Blake and the landlord subsequently settled on an amount of £6,000 . If the lease had gone lower than eighty years, the figure would have become more exhorbitant by a minimum £850.
In 2014 we were approached by Mr and Mrs. W Howard who, having completed a studio apartment in Askam In Furness in August 2001. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Askam In Furness with a long lease were valued around £233,200. The mid-range ground rent payable was £60 billed every twelve months. The lease ran out on 13 July 2086. Given that there were 61 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 plus legals.
In 2013 we were contacted by Mrs U Bertrand who, having acquired a one bedroom flat in Askam In Furness in October 2001. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical homes in Askam In Furness with a long lease were in the region of £166,800. The average amount of ground rent was £55 collected yearly. The lease lapsed on 1 August 2075. Considering the 50 years unexpired we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus professional charges.