When it comes to domestic leasehold property in Anstey, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Anyone in Anstey with a lease approaching 81 years left should seriously think of extending it sooner rather than later. Once the lease term has below eighty years remaining, under the current statute the freeholder is entitled to calculate and charge a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Anstey with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| 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. |
| 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. |
| Yorkshire 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. |
Lease extensions in Anstey can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Anstey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted negotiations with the freeholder of her one bedroom apartment in Anstey, Eleanor commenced the lease extension process as the 80 year mark was swiftly advancing. The lease extension was concluded in January 2007. The landlord’s charges were restricted to under 600 GBP.
Last year we were phoned by Mr P Pérez , who was assigned a lease of a purpose-built apartment in Anstey in April 2011. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable flats in Anstey with 100 year plus lease were in the region of £184,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease concluded in 2079. Given that there were 53 years remaining we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus legals.
In 2012 we were e-mailed by Mr J Peterson who, having moved into a first floor flat in Anstey in March 2010. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Anstey with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease ran out on 10 April 2099. Given that there were 73 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.