With a long leasehold property in Byfleet, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent 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 increases markedly especially once there are less than 80 years left. Leasehold owners in Byfleet with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has under 80 years outstanding, under the relevant legislation the landlord can calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Byfleet with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 estate 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. |
| 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. |
| 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. |
Lease extensions in Byfleet can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Byfleet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Omar was the the leasehold owner of a studio apartment in Byfleet being sold with a lease of a few days over 72 years left. Omar informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Omar to invoke his statutory right. Omar procured expert advice and secured an acceptable deal without resorting to tribunal and sell the flat.
Mrs J Walker took over the lease of a garden apartment in Byfleet in October 1998. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Identical homes in Byfleet with a long lease were in the region of £173,800. The mid-range ground rent payable was £60 billed every twelve months. The lease ran out in 2081. Taking into account 55 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of costs.
Last August we were e-mailed by Mrs E Allen , who purchased a one bedroom flat in Byfleet in May 2009. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative premises in Byfleet with an extended lease were worth £235,200. The mid-range amount of ground rent was £45 collected annually. The lease finished in 2092. Given that there were 66 years outstanding we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.