With a residential leasehold property in Trowbridge Estate, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years remaining. Residents in Trowbridge Estate with a lease approaching 81 years left should seriously think of extending it without delay. When the lease term has below eighty years remaining, under the relevant legislation the landlord is entitled to calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Trowbridge Estate with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest 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. |
| 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. |
Lease extensions in Trowbridge Estate can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Trowbridge Estate lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy correspondence with the freeholder of her garden flat in Trowbridge Estate, Jodie commenced the lease extension process just as the lease was coming close to the critical eighty-year threshold. The lease extension completed in September 2009. The landlord’s charges were kept to an absolute minimum.
Last Summer we were phoned by Dr H James , who purchased a studio flat in Trowbridge Estate in June 2007. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative flats in Trowbridge Estate with a long lease were valued around £285,000. The average amount of ground rent was £55 collected per annum. The lease came to a finish on 15 March 2104. Given that there were 79 years remaining we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including fees.
Last Spring we were contacted by Mr and Mrs. T Cooper , who purchased a garden apartment in Trowbridge Estate in May 1997. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Identical residencies in Trowbridge Estate with a long lease were worth £193,400. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease expired in 2084. Having 59 years unexpired we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of expenses.