Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Arthog. Clearly, the term of lease remaining reduces over time. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Arthog have the right to extend the lease for a further ninety years in accordance with legislation. Do give due deliberation before delaying your Arthog lease extension. Holding off that expense now likely increases the price you will eventually incur for a lease extension
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 further 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Arthog,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Arthog valuers.
After lengthy correspondence with the landlord of her ground floor flat in Arthog, Bethany started the lease extension process just as her lease was nearing the all-important 80-year deadline. The transaction completed in June 2006. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were phoned by Mr R Roux who, having purchased a one bedroom flat in Arthog in March 1996. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable premises in Arthog with an extended lease were in the region of £275,000. The average ground rent payable was £55 collected every twelve months. The lease expired on 11 June 2103. Having 77 years remaining we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.
Last Spring we were called by Dr Kai Gómez , who purchased a garden apartment in Arthog in April 2010. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Arthog with an extended lease were worth £183,600. The mid-range ground rent payable was £65 billed every twelve months. The lease ended on 1 June 2083. Given that there were 57 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of expenses.