With a residential leasehold property in Astwood Bank, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Residents in Astwood Bank with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has fewer than 80 years outstanding, under the relevant Act the freeholder can calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Astwood Bank with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| 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 lawyers that we work with undertake Astwood Bank 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.
Seth was the the leasehold proprietor of a conversion apartment in Astwood Bank being marketed with a lease of a few days over 72 years outstanding. Seth informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Seth to invoke his statutory right. Seth procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
In 2010 we were called by Ms A Cooper who, having completed a ground floor flat in Astwood Bank in May 1997. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable homes in Astwood Bank with a long lease were in the region of £242,600. The average ground rent payable was £45 billed every twelve months. The lease came to a finish on 8 October 2093. Given that there were 67 years unexpired we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of legals.
Last February we were called by Mrs Y Moreau , who took over the lease of a studio flat in Astwood Bank in August 1998. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable homes in Astwood Bank with a long lease were worth £280,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease expiry date was on 20 June 2104. Given that there were 78 years outstanding we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.