Askam In Furness leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Askam In Furness will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some cases you may not qualify. There are prescribed deadlines and formalities to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Askam In Furness with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with handle Askam In Furness 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 conveyancing solicitor we work with provide it.
Jason owned a conversion apartment in Askam In Furness being sold with a lease of fraction over 72 years left. Jason on an informal basis approached his landlord 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 on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Jason to exercise his statutory right. Jason procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2009 we were phoned by Mr and Mrs. J Davies who, having acquired a first floor apartment in Askam In Furness in April 2008. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Similar premises in Askam In Furness with 100 year plus lease were in the region of £223,400. The mid-range amount of ground rent was £60 collected per annum. The lease lapsed in 2085. Taking into account 59 years remaining we estimated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 plus legals.
Dr V Bernard took over the lease of a first floor flat in Askam In Furness in November 2009. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar homes in Askam In Furness with an extended lease were valued about £205,000. The average ground rent payable was £50 collected per annum. The lease concluded in 2105. Having 79 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.