Greenfield leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the current lease falls below 80 years - otherwise a higher amount will be payable. Flat owners in Greenfield will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Greenfield with in excess of 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Greenfield 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 lawyer we work with provide it.
Two years ago Teddy, came critically close to the eighty-year threshold with the lease on his garden apartment in Greenfield. In buying his flat 19 years previously, the lease term was of minimal importance. Fortunately, he realised he needed to take action soon on a lease extension. Teddy extended the lease just in the nick of time last January. Teddy and the freeholder via the management company subsequently agreed on sum of £5,500 . If the lease had dropped below 80 years, the premium would have become more costly by a minimum £850.
Mr and Mrs. N Harris purchased a purpose-built flat in Greenfield in April 2010. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Comparative flats in Greenfield with 100 year plus lease were valued around £265,000. The mid-range amount of ground rent was £50 collected annually. The lease expired in 2100. Taking into account 74 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
Last Spring we were phoned by Mr and Mrs. R Norbert , who took over the lease of a ground floor apartment in Greenfield in September 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Identical flats in Greenfield with 100 year plus lease were worth £166,400. The mid-range ground rent payable was £60 invoiced quarterly. The lease finished in 2080. Taking into account 54 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of expenses.