Arthog leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Arthog enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Arthog you really ought to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Arthog with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Arthog,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Arthog valuers.
Subsequent to protracted correspondence with the landlord of her ground floor flat in Arthog, Emily initiated the lease extension process as the 80 year deadline was swiftly coming. The transaction completed in May 2010. The landlord’s charges were restricted to a tad over 550 pounds.
In 2012 we were e-mailed by Mr and Mrs. A Sánchez who, having completed a first floor flat in Arthog in August 2010. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparable premises in Arthog with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 billed yearly. The lease lapsed on 12 June 2082. Considering the 56 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 not including costs.
Last month we were phoned by Mr and Mrs. S Simon , who moved into a basement flat in Arthog in July 1998. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative properties in Arthog with an extended lease were worth £237,600. The mid-range amount of ground rent was £45 collected every twelve months. The lease finished in 2093. Considering the 67 years remaining we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.