The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Astwood Bank have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Astwood Bank lease extension. Shelving that expense today simply increases the premium you will eventually have to pay for a lease extension.
Leasehold properties in Astwood Bank with over one hundred 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 buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Astwood Bank can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Astwood Bank lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the freeholder of her garden flat in Astwood Bank, Megan commenced the lease extension process as the eighty year threshold was swiftly coming. The legal work completed in July 2008. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were e-mailed by Mr and Mrs. H Norbert who, having purchased a ground floor apartment in Astwood Bank in May 2000. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative homes in Astwood Bank with 100 year plus lease were valued about £200,800. The average ground rent payable was £65 invoiced per annum. The lease terminated in 2086. Considering the 60 years unexpired we approximated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus expenses.
Dr Oliver Walker moved into a purpose-built apartment in Astwood Bank in September 2012. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Identical premises in Astwood Bank with a long lease were valued around £255,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease terminated in 2097. Having 71 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.