The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Barton le Willows may extend the lease for an additional 90 years under Leasehold Reform legislation. Please give careful consideration before delaying your Barton le Willows lease extension. Putting off that expense now simply escalates the premium you will ultimately be required to pay for a lease extension.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Barton le Willows 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.
Off the back of lengthy negotiations with the landlord of her one bedroom apartment in Barton le Willows, Abigail commenced the lease extension process just as the lease was approaching the all-important 80-year threshold. The legal work completed in June 2012. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were e-mailed by Mr and Mrs. S Rose who, having was assigned a lease of a one bedroom flat in Barton le Willows in September 2012. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Similar premises in Barton le Willows with a long lease were in the region of £173,800. The mid-range amount of ground rent was £65 billed per annum. The lease expired on 8 February 2081. Given that there were 55 years outstanding we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus legals.
In 2014 we were contacted by Mr and Mrs. B Allen who, having completed a basement flat in Barton le Willows in June 2009. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Identical residencies in Barton le Willows with a long lease were in the region of £235,200. The average amount of ground rent was £45 invoiced monthly. The lease ran out in 2092. Considering the 66 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.