Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Turvey. Clearly, the length of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Turvey have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Turvey lease extension. Putting off that expense now likely increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Turvey with more than one hundred years left on the lease are often referred to as ‘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 buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Engaging our service will provide you increased control over the value of your Turvey leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Ryan, started to get near to the 80-year mark with the lease on his leasehold flat in Turvey. In buying his property two decades ago, the lease term was of minimal relevance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Ryan arranged for a lease extension just under the wire in September. Ryan and the landlord who owned the flat above ultimately agreed on an amount of £5,000 . If the lease had slid below eighty years, the amount would have become more costly by a minimum £900.
Last year we were approach by Mr and Mrs. B Lefèvre , who completed a garden apartment in Turvey in March 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparative properties in Turvey with an extended lease were worth £210,600. The average amount of ground rent was £45 billed annually. The lease expiry date was in 2086. Having 62 years remaining we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of legals.
Dr Riley Ramírez took over the lease of a newly refurbished apartment in Turvey in June 1995. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable homes in Turvey with an extended lease were valued around £265,000. The mid-range ground rent payable was £50 billed monthly. The lease lapsed on 15 January 2097. Considering the 73 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.