Anlaby leases on residential deteriorating in value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease drops below 80 years - otherwise a higher amount will be payable. Leasehold owners in Anlaby will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not be entitled. There are also strict timetables and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Anlaby with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Anlaby 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 lawyer we work with provide it.
After protracted negotiations with the freeholder of her first floor flat in Anlaby, Ellie commenced the lease extension process as the eighty year mark was fast nearing. The transaction was finalised in January 2007. The landlord’s charges were negotiated to a tad over five hundred GBP.
In 2013 we were called by Mr and Mrs. L Sánchez who, having moved into a studio flat in Anlaby in November 2005. The question was if we could estimate the price would likely be to extend the lease by 90 years. Identical flats in Anlaby with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 collected annually. The lease concluded in 2101. Having 76 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.
Last Spring we were e-mailed by Ms Natasha David , who purchased a one bedroom flat in Anlaby in September 2004. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Anlaby with an extended lease were in the region of £257,800. The average ground rent payable was £65 collected monthly. The lease ended in 2090. Taking into account 65 years outstanding we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including legals.