The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Addiscombe have the right to extend the lease for an additional ninety years under legislation. Do think carefully before delaying your Addiscombe lease extension. Postponing the costs today simply increases the premium you will ultimately have to pay to extend the lease.
Leasehold properties in Addiscombe with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Regardless of whether you are a tenant or a freeholder in Addiscombe,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Addiscombe valuers.
During the course of the last few months Callum, started to get close to the eighty-year threshold with the lease on his basement flat in Addiscombe. Having bought his home two decades ago, the lease term was of no significance. Thankfully, he recognised he needed to take steps soon on a lease extension. Callum extended the lease at the eleventh hour last September. Callum and the freeholder eventually settled on the final figure of £6,000 . If the lease had dipped below 80 years, the premium would have become more costly by at least £1,000.
In 2012 we were called by Dr Katie Richardson who, having took over the lease of a first floor flat in Addiscombe in November 2008. We are asked if we could approximate the price could be to extend the lease by an additional years. Comparative flats in Addiscombe with a long lease were worth £176,200. The mid-range ground rent payable was £65 billed quarterly. The lease termination date was on 20 February 2082. Having 56 years outstanding we approximated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of costs.
An example of a Freehold Enfranchisement decision for a Addiscombe property is 29 Woodstock Road in April 2014. the Tribunal determined that the premiums to be paid into court in respect of the purchase of the freehold registered at HMLR under Title N0.SY3997 should be £7,217. This case was in relation to 4 flats. The remaining number of years on the lease was 98 years.