With a domestic leasehold property in Binfield, you effectively rent it for a certain amount of time. In recent years 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 extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are less than 80 years left. Residents in Binfield with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once the lease term has below eighty years left, under the relevant legislation the landlord can calculate and demand a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Binfield with in excess of 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Binfield,the lease extension experts 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 Binfield valuers.
Kyle owned a 2 bedroom flat in Binfield being marketed with a lease of a few days over 61 years left. Kyle on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Kyle to exercise his statutory right. Kyle procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2009 we were called by Dr O Bell who, having bought a garden flat in Binfield in November 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Binfield with 100 year plus lease were in the region of £265,200. The average amount of ground rent was £65 invoiced monthly. The lease ended in 2092. Given that there were 66 years outstanding we approximated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of costs.
In 2011 we were contacted by Ms N Campbell who, having completed a ground floor flat in Binfield in November 2012. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparable properties in Binfield with 100 year plus lease were in the region of £198,800. The average amount of ground rent was £55 invoiced monthly. The lease end date was on 25 February 2081. Considering the 55 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 plus fees.