On the balance of probabilities if you own a flat in Easthampstead you actually own a long leasehold interest over your property
Leasehold premises in Easthampstead with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The conveyancing solicitors that we work with undertake Easthampstead 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.
Off the back of protracted discussions with the landlord of her garden apartment in Easthampstead, Megan started the lease extension process as the eighty year mark was rapidly advancing. The legal work was finalised in September 2007. The freeholder’s fees were kept to an absolute minimum.
Last year we were e-mailed by Mr B Leroy , who took over the lease of a garden flat in Easthampstead in January 2000. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Comparable premises in Easthampstead with an extended lease were worth £290,000. The average amount of ground rent was £45 invoiced per annum. The lease expiry date was on 24 October 2099. Taking into account 73 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
In 2013 we were approached by Dr Jackson Morel who, having acquired a purpose-built flat in Easthampstead in May 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Easthampstead with 100 year plus lease were worth £240,600. The average amount of ground rent was £60 billed annually. The lease came to a finish in 2088. Considering the 62 years left we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.