With a domestic leasehold premises in Upminster Bridge, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may 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 once there are fewer than eighty years remaining. Anyone in Upminster Bridge with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When the lease term has below 80 years left, under the relevant legislation the freeholder can calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Upminster Bridge with more than 100 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 premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 conveyancing solicitors that we work with procure Upminster Bridge 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.
Trailing protracted correspondence with the landlord of her garden apartment in Upminster Bridge, Charlotte commenced the lease extension process as the eighty year mark was rapidly approaching. The transaction was concluded in October 2008. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. P Leroy took over the lease of a purpose-built apartment in Upminster Bridge in February 2004. The question was if we could estimate the price would be to prolong the lease by ninety years. Comparable homes in Upminster Bridge with an extended lease were in the region of £191,400. The average ground rent payable was £55 invoiced annually. The lease came to a finish in 2080. Taking into account 54 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 plus professional charges.
An example of a Lease Extension case for a Upminster Bridge property is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case affected 1 flat. The unexpired term was 57.5 years.