Chances are that where you own a flat in Caddington you actually own a long leasehold interest over your property
Leasehold residencies in Caddington with over 100 years remaining on the lease are often regarded as a ‘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 freehold unless savings on ground rent and maintenance 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. |
Halifax | Minimum 70 years from the date of the mortgage. |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Yorkshire Building Society | 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. |
The conveyancing solicitors that we work with procure Caddington 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.
Trailing unsuccessful correspondence with the landlord of her ground floor apartment in Caddington, Daisy started the lease extension process as the 80 year threshold was fast nearing. The legal work was finalised in March 2011. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. A Pérez completed a ground floor apartment in Caddington in June 2011. The question was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparative residencies in Caddington with 100 year plus lease were valued around £173,800. The average amount of ground rent was £60 billed per annum. The lease elapsed on 17 July 2080. Having 55 years as a residual term we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.
Mr and Mrs. T Michel owned a one bedroom apartment in Caddington in January 2005. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparative homes in Caddington with an extended lease were in the region of £235,200. The average ground rent payable was £45 billed annually. The lease concluded in 2091. Taking into account 66 years unexpired we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.