When it comes to long leasehold property in Emersons Green, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Anyone in Emersons Green with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has under eighty years left, under the relevant legislation the landlord is entitled to calculate and charge a larger premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Emersons Green with in excess of 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 premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit 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. |
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
Coventry Building Society | 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. |
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. |
Engaging our service will provide you increased control over the value of your Emersons Green leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the freeholder of her garden flat in Emersons Green, Maisie initiated the lease extension process just as her lease was nearing the critical eighty-year deadline. The legal work was concluded in April 2005. The freeholder’s costs were restricted to a tad over 450 GBP.
In 2010 we were contacted by Dr Sebastian Flores who, having purchased a purpose-built apartment in Emersons Green in February 2012. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable homes in Emersons Green with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 collected every twelve months. The lease elapsed in 2101. Taking into account 76 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.
In 2011 we were e-mailed by Dr Joshua Hernández who, having moved into a purpose-built apartment in Emersons Green in May 1995. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative flats in Emersons Green with 100 year plus lease were worth £257,800. The average ground rent payable was £65 invoiced monthly. The lease ended in 2090. Having 65 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 not including costs.