When it comes to residential leasehold premises in Binstead, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years remaining. Anyone in Binstead with a lease nearing 81 years remaining should seriously think of extending it without delay. Once a lease has fewer than 80 years remaining, under the current legislation the freeholder is entitled to calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in Binstead with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Binstead,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Binstead valuers.
Edward owned a 2 bedroom apartment in Binstead being marketed with a lease of a little over sixty years remaining. Edward informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Edward to exercise his statutory right. Edward obtained expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Mr and Mrs. Y Michel moved into a purpose-built apartment in Binstead in November 2008. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparative premises in Binstead with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 billed yearly. The lease end date was on 14 February 2102. Given that there were 76 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
Last Spring we were e-mailed by Dr Jackson David , who completed a studio flat in Binstead in February 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Binstead with a long lease were in the region of £173,800. The mid-range amount of ground rent was £65 billed annually. The lease terminated in 2081. Considering the 55 years remaining we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus fees.