When it comes to long leasehold premises in Birch and Middleton, you are actually purchasing a right to live 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 long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than eighty years left. Leasehold owners in Birch and Middleton with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. When the lease term has below eighty years left, under the relevant legislation the landlord can calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Birch and Middleton with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
The lawyers that we work with procure Birch and Middleton 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 lawyer we work with provide it.
Ryan was the the leasehold owner of a 2 bedroom apartment in Birch and Middleton being marketed with a lease of a little over 72 years remaining. Ryan informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Ryan to exercise his statutory right. Ryan procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last Summer we were phoned by Mrs O King , who acquired a one bedroom apartment in Birch and Middleton in May 2003. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative residencies in Birch and Middleton with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 billed every twelve months. The lease came to a finish in 2105. Considering the 79 years left we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
Last June we were phoned by Dr T Anderson , who was assigned a lease of a recently refurbished flat in Birch and Middleton in October 1995. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative flats in Birch and Middleton with an extended lease were valued around £275,000. The average ground rent payable was £65 billed yearly. The lease ran out on 5 April 2094. Taking into account 68 years remaining we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.