When it comes to residential leasehold property in Barlaston and Tittensor, you are actually buying a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are fewer than 80 years left. Anyone in Barlaston and Tittensor with a lease drawing near to 81 years left should seriously think of extending it sooner than later. When the lease term has less than 80 years outstanding, under the current Act the landlord can calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Barlaston and Tittensor with more than 100 years remaining on the lease are often referred to as ‘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 reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Barlaston and Tittensor,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barlaston and Tittensor valuers.
Following unsuccessful correspondence with the freeholder of her leasehold apartment in Barlaston and Tittensor, Jordan commenced the lease extension process just as the lease was coming close to the critical eighty-year mark. The legal work was concluded in June 2007. The freeholder’s costs were restricted to a tad over 700 GBP.
Last Spring we were called by Mr and Mrs. D Gómez , who moved into a newly refurbished apartment in Barlaston and Tittensor in February 2003. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Identical homes in Barlaston and Tittensor with an extended lease were worth £181,600. The mid-range ground rent payable was £55 billed yearly. The lease ran out on 19 July 2077. Taking into account 52 years remaining we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.
In 2012 we were contacted by Mr Tommy Hall who, having bought a purpose-built flat in Barlaston and Tittensor in January 2007. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparable residencies in Barlaston and Tittensor with an extended lease were valued about £290,000. The average amount of ground rent was £45 collected quarterly. The lease ended on 19 November 2097. Taking into account 72 years as a residual term we calculated the premium to the landlord to extend the lease to be between £11,400 and £13,200 plus fees.