Repton residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
Leasehold residencies in Repton with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify 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. |
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. |
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 |
The conveyancing solicitors that we work with undertake Repton 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 conveyancer we work with provide it.
Kai owned a 2 bedroom flat in Repton on the market with a lease of a few days over fifty eight years outstanding. Kai on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kai to invoke his statutory right. Kai procured expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
Mr and Mrs. W Murphy bought a newly refurbished flat in Repton in March 1998. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Similar residencies in Repton with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected quarterly. The lease finished on 24 August 2093. Considering the 69 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Mrs O Rivera owned a studio apartment in Repton in April 2012. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar homes in Repton with a long lease were worth £290,000. The mid-range ground rent payable was £60 billed monthly. The lease finished in 2104. Taking into account 80 years remaining we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.