For anyone whose Arkley flat is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
Leasehold premises in Arkley with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
|Barclays plc||Mortgage term plus 25 years|
|Birmingham Midshires|| Minimum 70 years from the date of the mortgage.|
|Chelsea 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.|
|Leeds Building Society||85 years remaing from the start of the mortgage.|
|National Westminster Bank|| Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
Lease extensions in Arkley can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 Arkley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Kai, came dangerously near to the eighty-year mark with the lease on his one bedroom apartment in Arkley. In buying his home two decades ago, the lease term was of little concern. Fortunately, he became aware that he would soon be paying way over the odds for a lease extension. Kai extended the lease at the eleventh hour in May. Kai and the landlord eventually settled on the final figure of £6,000 . If the lease had descended below 80 years, the figure would have gone up by a minimum £1,050.
In 2012 we were approached by Mr and Mrs. K Scott who, having owned a studio apartment in Arkley in May 2006. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative properties in Arkley with a long lease were worth £290,000. The average amount of ground rent was £45 billed every twelve months. The lease expiry date was on 23 May 2091. Having 72 years unexpired we approximated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 not including legals.
An example of a Lease Extension matter before the tribunal for a Arkley residence is Ground Floor Maisonette 17 Milton Road in January 2014. The Tribunal determined the premium payable by the Applicant to the should be £13,299 This case affected 1 flat. The remaining number of years on the lease was 71.73 years.