Upton leases on residential deteriorating in value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Upton will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some cases you may not be entitled. There are prescribed deadlines and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Upton with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Coventry Building Society | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Upton leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the landlord of her two bedroom apartment in Upton, Jasmine initiated the lease extension process just as the lease was nearing the all-important eighty-year deadline. The lease extension completed in February 2008. The freeholder’s charges were negotiated to about 700 pounds.
In 2012 we were e-mailed by Mr and Mrs. F Norbert who, having bought a newly refurbished flat in Upton in July 1998. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar premises in Upton with a long lease were in the region of £208,200. The average amount of ground rent was £65 billed every twelve months. The lease ended on 17 November 2087. Considering the 61 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of costs.
An example of a Lease Extension case for a Upton premises is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case was in relation to 13 flats. The unexpired residue of the current lease was 76 years.