Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Anlaby. Clearly, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Anlaby have the right to extend the lease for an additional 90 years under statute. You should give careful consideration before putting off your Anlaby lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease
Leasehold premises in Anlaby with more than one hundred years left on the lease are often referred to as ‘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 to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Anlaby can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in this area.
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 in-depth market knowledge dealing with Anlaby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of unsuccessful correspondence with the freeholder of her studio apartment in Anlaby, Sarah initiated the lease extension process as the eighty year mark was fast nearing. The legal work completed in June 2005. The landlord’s charges were kept to an absolute minimum.
Dr K James completed a recently refurbished apartment in Anlaby in April 2008. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Comparative flats in Anlaby with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 billed monthly. The lease terminated in 2103. Taking into account 77 years left we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Last year we were e-mailed by Dr Benjamin Roberts , who moved into a one bedroom apartment in Anlaby in March 2010. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Identical properties in Anlaby with 100 year plus lease were valued about £260,200. The average amount of ground rent was £65 billed per annum. The lease terminated on 14 May 2092. Considering the 66 years remaining we approximated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 not including expenses.