On the balance of probabilities if you own a flat in Leven you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 lawyers that we work with handle Leven 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.
Joshua owned a studio apartment in Leven on the market with a lease of just over 59 years outstanding. Joshua informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Joshua to invoke his statutory right. Joshua obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last month we were phoned by Ms Sian Moreau , who bought a ground floor apartment in Leven in June 2006. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Comparative homes in Leven with an extended lease were worth £227,800. The average amount of ground rent was £45 invoiced every twelve months. The lease ran out on 18 November 2091. Considering the 65 years as a residual term we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.
Last July we were phoned by Mr and Mrs. C Roux , who moved into a first floor flat in Leven in November 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparable properties in Leven with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced annually. The lease expired in 2102. Having 76 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.