With a domestic leasehold premises in Cherry Burton, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are less than eighty years remaining. Residents in Cherry Burton with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. When a lease has fewer than 80 years outstanding, under the current statute the freeholder can calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Cherry Burton with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Cherry Burton,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 experience and the close ties they enjoy with Cherry Burton valuers.
Trailing lengthy discussions with the freeholder of her two bedroom apartment in Cherry Burton, Lauren commenced the lease extension process just as her lease was nearing the critical 80-year deadline. The lease extension was concluded in November 2008. The landlord’s costs were kept to an absolute minimum.
Last Winter we were approach by Dr Gemma Peterson , who moved into a ground floor flat in Cherry Burton in March 1999. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparative premises in Cherry Burton with an extended lease were in the region of £200,800. The average ground rent payable was £65 billed per annum. The lease terminated in 2085. Having 60 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 plus expenses.
In 2014 we were phoned by Ms Danielle Scott who, having acquired a garden apartment in Cherry Burton in July 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Cherry Burton with a long lease were in the region of £255,000. The average amount of ground rent was £50 billed yearly. The lease expired on 17 January 2096. Considering the 71 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.