When it comes to residential leasehold premises in Ardwick, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in Ardwick with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When a lease has fewer than 80 years left, under the relevant Act the landlord is entitled to calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Ardwick with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Ardwick,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ardwick valuers.
Jayden owned a high value apartment in Ardwick on the market with a lease of a few days over 59 years left. Jayden informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Jayden to exercise his statutory right. Jayden procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Dr Danielle Sánchez took over the lease of a ground floor flat in Ardwick in March 1998. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Ardwick with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease terminated in 2088. Taking into account 62 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 plus legals.
In 2009 we were called by Mr and Mrs. S Morel who, having acquired a studio flat in Ardwick in June 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparable homes in Ardwick with an extended lease were worth £260,000. The average amount of ground rent was £50 invoiced yearly. The lease expired on 19 May 2099. Taking into account 73 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.