When it comes to residential leasehold property in Birch and Middleton, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about 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 greater particularly once there are less than 80 years remaining. Leasehold owners in Birch and Middleton with a lease drawing near to 81 years remaining should seriously think of extending it sooner as opposed to later. When a lease has less than eighty years remaining, under the current legislation the freeholder can calculate and demand a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Birch and Middleton with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a landlord in Birch and Middleton,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 Birch and Middleton valuers.
Trailing protracted discussions with the freeholder of her garden apartment in Birch and Middleton, Leah started the lease extension process as the eighty year threshold was rapidly advancing. The lease extension completed in October 2013. The landlord’s charges were restricted to less than six hundred GBP.
Mrs V Harris bought a recently refurbished flat in Birch and Middleton in November 2007. The dilemma was if we could approximate the price could be for a ninety year lease extension. Similar homes in Birch and Middleton with an extended lease were valued around £257,800. The average amount of ground rent was £65 invoiced every twelve months. The lease lapsed on 14 May 2091. Having 65 years outstanding we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of legals.
Mr and Mrs. T Gray purchased a first floor apartment in Birch and Middleton in October 2005. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Birch and Middleton with a long lease were in the region of £191,400. The average amount of ground rent was £55 billed yearly. The lease elapsed in 2080. Taking into account 54 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 plus fees.