On the balance of probabilities if you own a flat in Arnside you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Arnside can be a difficult process. We recommend you procure professional help from a conveyancer 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 in-depth market knowledge dealing with Arnside lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Daniel owned a conversion flat in Arnside being sold with a lease of a few days over 61 years left. Daniel on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Daniel to exercise his statutory right. Daniel procured expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Last month we were contacted by Dr Y Thomas , who moved into a first floor flat in Arnside in August 2003. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar properties in Arnside with an extended lease were worth £275,000. The average ground rent payable was £65 billed per annum. The lease ended on 2 January 2094. Considering the 68 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.
In 2013 we were called by Mr and Mrs. R Hill who, having owned a purpose-built apartment in Arnside in March 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical homes in Arnside with an extended lease were valued around £208,600. The average amount of ground rent was £60 billed annually. The lease elapsed in 2083. Taking into account 57 years remaining we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 not including expenses.