Astwood Bank leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease dips lower than eighty years - otherwise a higher amount will be due. Leasehold owners in Astwood Bank will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not be entitled. There are prescribed timetables and steps to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Astwood Bank with over 100 years remaining 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Astwood Bank leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Seth, came seriously near to the eighty-year threshold with the lease on his first floor flat in Astwood Bank. Having purchased his flat 18 years previously, the unexpired term was of minimal interest. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Seth extended the lease at the eleventh hour last June. Seth and the freeholder subsequently agreed on an amount of £6,000 . If the lease had descended lower than 80 years, the amount would have become more exhorbitant by at least £875.
Mr C Walker acquired a ground floor apartment in Astwood Bank in August 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative homes in Astwood Bank with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 billed yearly. The lease finished on 3 June 2102. Considering the 77 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.
Last Summer we were approach by Mr and Mrs. M Moore , who acquired a one bedroom apartment in Astwood Bank in February 2004. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical residencies in Astwood Bank with 100 year plus lease were in the region of £183,600. The mid-range ground rent payable was £65 billed annually. The lease terminated on 21 September 2082. Considering the 57 years left we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including costs.