Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Downend. Inevitably, the length of lease left reduces over time. This is often overlooked and only raises itself as an issue when the residence has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Downend have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. Please give careful attention before delaying your Downend lease extension. Putting off the cost now simply increases the price you will eventually incur to extend your lease
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Downend can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 Downend lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Jonathan, came dangerously near to the 80-year mark with the lease on his purpose- built flat in Downend. In buying his property two decades ago, the lease term was of minimal importance. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Jonathan extended the lease just under the wire in August. Jonathan and the freeholder via the managing agents eventually agreed on an amount of £5,000 . If he had missed the deadline, the price would have become more exhorbitant by a minimum £1,025.
In 2011 we were e-mailed by Dr V Wilson who, having completed a recently refurbished apartment in Downend in January 1997. The question was if we could approximate the premium could be for a 90 year lease extension. Comparative properties in Downend with an extended lease were in the region of £280,000. The average amount of ground rent was £45 collected monthly. The lease concluded on 21 August 2095. Taking into account 70 years remaining we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.
In 2010 we were phoned by Mr and Mrs. V Michel who, having was assigned a lease of a basement apartment in Downend in June 2001. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable homes in Downend with 100 year plus lease were in the region of £223,400. The average ground rent payable was £60 billed every twelve months. The lease ran out in 2084. Having 59 years remaining we calculated the premium to the landlord for the lease extension to be within £27,600 and £31,800 plus costs.