When it comes to residential leasehold premises in Atherstone, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are less than eighty years left. Anyone in Atherstone with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has less than eighty years outstanding, under the current statute the freeholder can calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
The lawyers that we work with undertake Atherstone 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.
After unsuccessful correspondence with the freeholder of her leasehold apartment in Atherstone, Tia initiated the lease extension process just as the lease was approaching the all-important 80-year mark. The lease extension completed in June 2007. The freeholder’s costs were negotiated to about 600 pounds.
In 2012 we were approached by Mr and Mrs. W Morel who, having acquired a studio apartment in Atherstone in March 1997. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparative properties in Atherstone with 100 year plus lease were in the region of £265,000. The average ground rent payable was £50 invoiced every twelve months. The lease terminated in 2098. Given that there were 73 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
Mr and Mrs. N Sharif owned a basement flat in Atherstone in June 2009. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Comparative properties in Atherstone with an extended lease were in the region of £264,000. The average ground rent payable was £60 billed per annum. The lease ran out in 2078. Taking into account 53 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 plus professional charges.