When it comes to long leasehold property in Askam In Furness, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Anyone in Askam In Furness with a lease nearing 81 years left should seriously think of extending it sooner rather than later. Once the lease term has less than eighty years outstanding, under the current statute the freeholder is entitled to calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Askam In Furness with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
Theo was the the leasehold owner of a studio flat in Askam In Furness on the market with a lease of fraction over 59 years left. Theo on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Theo to invoke his statutory right. Theo obtained expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Last Summer we were called by Mr and Mrs. K Brooks , who bought a first floor apartment in Askam In Furness in November 2009. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Comparable homes in Askam In Furness with an extended lease were in the region of £200,000. The average amount of ground rent was £50 invoiced monthly. The lease elapsed in 2102. Considering the 77 years unexpired we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
Mr F Walker owned a one bedroom apartment in Askam In Furness in February 2004. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar properties in Askam In Furness with an extended lease were worth £260,200. The average amount of ground rent was £65 billed every twelve months. The lease ran out in 2091. Taking into account 66 years remaining we calculated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 plus costs.