Chances are that if you own a flat in Bebington you actually own a long leasehold interest over your property
Leasehold premises in Bebington with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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 lawyers that we work with undertake Bebington 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.
James owned a studio apartment in Bebington being marketed with a lease of just over fifty eight years left. James on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were James to invoke his statutory right. James obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2009 we were approached by Mr U Roberts who, having acquired a one bedroom apartment in Bebington in August 1995. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparable homes in Bebington with a long lease were valued about £216,000. The mid-range amount of ground rent was £60 invoiced per annum. The lease lapsed on 22 January 2084. Having 58 years outstanding we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including expenses.
Last July we were phoned by Ms U Robinson , who owned a garden flat in Bebington in February 2011. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Bebington with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 invoiced annually. The lease ran out in 2104. Considering the 78 years left we estimated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 exclusive of fees.