The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Arlesey can extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Please give careful consideration before delaying your Arlesey lease extension. Putting off that expense now simply increases the amount you will ultimately be required to pay for a lease extension.
Leasehold premises in Arlesey with in excess of one hundred years outstanding on the lease are often 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 freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Arlesey can be a difficult process. We recommend you secure guidance from a lawyer and surveyor 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 in-depth market knowledge procuring Arlesey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eli owned a 2 bedroom apartment in Arlesey on the market with a lease of a little over fifty eight years outstanding. Eli on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Eli to invoke his statutory right. Eli procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last month we were e-mailed by Mr and Mrs. H Morgan , who took over the lease of a recently refurbished apartment in Arlesey in March 2009. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Similar premises in Arlesey with an extended lease were valued around £173,800. The mid-range ground rent payable was £65 invoiced per annum. The lease came to a finish in 2081. Taking into account 55 years left we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus fees.
In 2012 we were approached by Dr J Nelson who, having purchased a garden apartment in Arlesey in March 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical premises in Arlesey with an extended lease were in the region of £235,200. The average amount of ground rent was £45 invoiced monthly. The lease expired in 2092. Having 66 years left we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.