There is no doubt about it a leasehold flat or house in Cherry Willingham is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner than later. The majority of flat owners in Cherry Willingham will meet the qualifying criteria; nevertheless a lawyer will be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Cherry Willingham with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Cherry Willingham 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.
Last Autumn Aiden, came perilously close to the 80-year mark with the lease on his two bedroom apartment in Cherry Willingham. Having bought his home two decades ago, the lease term was of no importance. Thankfully, he recognised he needed to take action soon on Extending the lease. Aiden extended the lease just under the wire in January. Aiden and the landlord who owned the flat above in the end settled on the final figure of £5,000 . If the lease had slid below eighty years, the amount would have become more costly by a minimum £950.
In 2012 we were phoned by Mrs P Phillips who, having was assigned a lease of a garden apartment in Cherry Willingham in February 2005. The dilemma was if we could estimate the price would be for a ninety year lease extension. Similar homes in Cherry Willingham with a long lease were in the region of £191,400. The mid-range amount of ground rent was £55 collected per annum. The lease lapsed on 27 May 2079. Having 54 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 not including expenses.
In 2012 we were contacted by Ms G Wright who, having purchased a first floor flat in Cherry Willingham in November 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Identical properties in Cherry Willingham with an extended lease were in the region of £295,000. The average amount of ground rent was £45 billed per annum. The lease lapsed on 24 February 2099. Taking into account 74 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.