Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Leyland. Clearly, the term of lease remaining reduces over time. This is often ignored and only becomes a problem when the residence has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Leyland have the right to extend the lease for a further 90 years in accordance with statute. You should give due consideration before putting off your Leyland lease extension. Holding off the cost now only increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Leyland with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Using our service will provide you enhanced control over the value of your Leyland leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Eliot, started to get close to the 80-year threshold with the lease on his ground floor flat in Leyland. Having bought his home two decades ago, the unexpired term was of minimal interest. Luckily, he realised he needed to take steps soon on Extending the lease. Eliot was able to extend his lease just under the wire in August. Eliot and the landlord who owned the flat above in the end settled on sum of £5,000 . If the lease had slipped to less than 80 years, the price would have escalated by a minimum £925.
Dr R Leroy acquired a first floor apartment in Leyland in May 1997. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparative residencies in Leyland with 100 year plus lease were worth £290,000. The average ground rent payable was £45 billed every twelve months. The lease concluded on 4 October 2098. Taking into account 73 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.
In 2014 we were approached by Mr and Mrs. E Ali who, having acquired a newly refurbished flat in Leyland in March 2002. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar properties in Leyland with an extended lease were in the region of £240,600. The average ground rent payable was £60 collected every twelve months. The lease ended on 22 September 2087. Taking into account 62 years remaining we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including expenses.