Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Ardleigh Green. Clearly, the term of lease left reduces as time goes by. This may pass by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Ardleigh Green have the legal entitlement to extend the lease for a further 90 years under statute. Please give due consideration before putting off your Ardleigh Green lease extension. Putting off that expense now likely increases the price you will ultimately incur to extend your lease
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
The conveyancing solicitors that we work with handle Ardleigh Green 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 conveyancing solicitor we work with provide it.
Omar was the the leasehold proprietor of a 2 bedroom flat in Ardleigh Green on the market with a lease of just over 61 years outstanding. Omar informally approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Omar to invoke his statutory right. Omar obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2010 we were called by Mr and Mrs. P Brooks who, having owned a newly refurbished apartment in Ardleigh Green in November 2012. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Comparable flats in Ardleigh Green with an extended lease were in the region of £198,400. The average amount of ground rent was £65 collected every twelve months. The lease expired on 19 February 2085. Considering the 59 years left we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including costs.
An example of a Lease Extension matter before the tribunal for a Ardleigh Green flat is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case related to 1 flat. The number of years remaining on the existing lease(s) was 57.5 years.