With a residential leasehold property in Anstey, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are fewer than 80 years left. Residents in Anstey with a lease approaching 81 years unexpired should seriously think of extending it without delay. When a lease has under 80 years remaining, under the relevant statute the landlord is entitled to calculate and demand a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Anstey,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 Anstey valuers.
In 2014 Matthew, started to get near to the 80-year threshold with the lease on his one bedroom flat in Anstey. In buying his flat two decades ago, the length of the lease was of little concern. Thankfully, he became aware that he needed to take action soon on a lease extension. Matthew arranged for a lease extension just in the nick of time last January. Matthew and the freeholder eventually agreed on an amount of £5,500 . If the lease had slipped to less than eighty years, the premium would have escalated by at least £900.
In 2012 we were phoned by Mr and Mrs. W Martin who, having bought a ground floor apartment in Anstey in May 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar homes in Anstey with a long lease were worth £198,800. The average ground rent payable was £55 invoiced annually. The lease terminated on 18 August 2080. Having 55 years left we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus professional charges.
Last Summer we were contacted by Dr Charlie López , who purchased a ground floor flat in Anstey in November 2002. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparative premises in Anstey with 100 year plus lease were in the region of £295,000. The average ground rent payable was £50 invoiced per annum. The lease elapsed on 19 January 2100. Given that there were 75 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.