When it comes to long leasehold property in Turvey, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years left. Anyone in Turvey with a lease approaching 81 years left should seriously consider extending it sooner than later. Once the lease term has less than eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Turvey with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Using our service will provide you enhanced control over the value of your Turvey leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
George owned a 2 bedroom flat in Turvey being sold with a lease of just over 59 years outstanding. George informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were George to exercise his statutory right. George obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Mr D Sánchez completed a recently refurbished flat in Turvey in January 2005. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparative properties in Turvey with 100 year plus lease were in the region of £168,800. The mid-range ground rent payable was £60 collected yearly. The lease expired on 13 October 2080. Taking into account 55 years outstanding we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus costs.
Last Winter we were e-mailed by Dr Seth Robinson , who purchased a studio flat in Turvey in September 2006. The question was if we could estimate the price would likely be to prolong the lease by ninety years. Comparable flats in Turvey with a long lease were in the region of £235,200. The mid-range amount of ground rent was £45 billed yearly. The lease elapsed in 2091. Considering the 66 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.