Arkley leases on residential deteriorating in value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease falls lower than 80 years - otherwise a higher premium will be payable. Flat owners in Arkley will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In certain cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Arkley with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
The conveyancers that we work with procure Arkley 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 lawyer we work with provide it.
Jake owned a conversion apartment in Arkley on the market with a lease of a few days over 59 years unexpired. Jake on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Jake to exercise his statutory right. Jake obtained expert advice and secured an acceptable resolution informally and sell the property.
Last Christmas we were phoned by Ms Gemma Leroy , who took over the lease of a one bedroom flat in Arkley in July 2012. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Similar premises in Arkley with 100 year plus lease were in the region of £240,600. The average amount of ground rent was £60 billed per annum. The lease lapsed in 2087. Having 62 years remaining we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including expenses.
An example of a Lease Extension case for a Arkley property 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 unexpired residue of the current lease was 71.73 years.