Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Anston. Clearly, the length of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the residence has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Anston have the right to extend the lease for an additional 90 years under legislation. You should give careful deliberation before delaying your Anston lease extension. Holding off the cost now simply increases the price you will eventually have to pay for a lease extension
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Anston leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Tommy, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Anston. In buying his flat twenty years previously, the lease term was of little interest. Thankfully, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Tommy was able to extend his lease at the eleventh hour last January. Tommy and the freeholder eventually settled on an amount of £5,000 . If the lease had dropped below eighty years, the premium would have become more exhorbitant by at least £1,100.
Mr W Dupont completed a recently refurbished flat in Anston in July 2001. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Comparable premises in Anston with an extended lease were worth £206,200. The mid-range amount of ground rent was £55 invoiced per annum. The lease lapsed in 2082. Given that there were 56 years left we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of costs.
In 2009 we were approached by Mr I Ricardo who, having purchased a first floor apartment in Anston in April 2007. We are asked if we could estimate the premium could be to extend the lease by an additional years. Comparable homes in Anston with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 collected every twelve months. The lease expired on 27 October 2102. Taking into account 76 years left we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.