Unfortunately that a Repton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Repton property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. The majority of flat owners in Repton will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Repton with more than one hundred years remaining 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 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.
Leo owned a 2 bedroom apartment in Repton being sold with a lease of a little over 72 years remaining. Leo on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leo to exercise his statutory right. Leo procured expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2010 we were approached by Mr and Mrs. U Cook who, having took over the lease of a one bedroom apartment in Repton in July 1998. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparable properties in Repton with 100 year plus lease were worth £173,800. The average amount of ground rent was £60 billed monthly. The lease lapsed on 13 January 2081. Having 55 years left we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus legals.
Ms F Clark was assigned a lease of a one bedroom flat in Repton in October 1999. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Identical flats in Repton with a long lease were in the region of £235,200. The average amount of ground rent was £45 billed every twelve months. The lease expired on 10 March 2092. Having 66 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.