When it comes to domestic leasehold property in Umberleigh, 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 think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Anyone in Umberleigh with a lease drawing near to 81 years remaining should seriously think of extending it sooner than later. When the lease term has fewer than eighty years remaining, under the current statute the landlord can calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Umberleigh with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Umberleigh can be a difficult process. We recommend you obtain guidance from a lawyer 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 procuring Umberleigh lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the freeholder of her purpose-built apartment in Umberleigh, Hollie started the lease extension process just as the lease was coming close to the crucial eighty-year mark. The transaction completed in February 2012. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were contacted by Mr V Cox , who acquired a one bedroom flat in Umberleigh in May 2003. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Comparative properties in Umberleigh with an extended lease were in the region of £223,400. The average amount of ground rent was £60 billed every twelve months. The lease elapsed in 2083. Considering the 59 years left we approximated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of costs.
Mr U White moved into a one bedroom flat in Umberleigh in May 1995. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical homes in Umberleigh with a long lease were valued about £205,000. The average ground rent payable was £50 collected quarterly. The lease lapsed in 2103. Considering the 79 years remaining we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.