With a residential leasehold premises in Repton, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are less than 80 years left. Residents in Repton with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When the lease term has below eighty years remaining, under the current Act the landlord is entitled to calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Repton with in excess of 100 years remaining on the lease are often referred to as ‘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 upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Repton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Repton valuers.
18 months ago Ben, came dangerously near to the 80-year mark with the lease on his garden apartment in Repton. Having purchased his home two decades ago, the length of the lease was of minimal bearing. As luck would have it, it dawned on him that he would imminently be paying way over the odds for a lease extension. Ben arranged for a lease extension at the eleventh hour in May. Ben and the freeholder via the managing agents ultimately agreed on an amount of £5,500 . If the lease had slipped to less than eighty years, the figure would have become more exhorbitant by at least £875.
Dr Freya Cook owned a first floor apartment in Repton in July 2011. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Similar flats in Repton with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 billed monthly. The lease terminated in 2097. Having 71 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
Mr and Mrs. C Watson took over the lease of a purpose-built apartment in Repton in February 2002. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Comparative homes in Repton with a long lease were worth £254,200. The average ground rent payable was £60 billed annually. The lease expired on 4 January 2077. Taking into account 51 years left we approximated the premium to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of legals.