Chances are that if you own a flat in Congleton you actually own a long leasehold interest over your property
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Congleton 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.
In the wake of 9 months of protracted discussions with the landlord of her basement apartment in Congleton, Rachael initiated the lease extension process as the 80 year deadline was swiftly coming. The lease extension was finalised in October 2005. The landlord’s costs were kept to an absolute minimum.
Dr Ellen Brown was assigned a lease of a one bedroom flat in Congleton in March 1995. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Congleton with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 billed per annum. The lease expired on 28 November 2089. Considering the 63 years remaining we calculated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 not including expenses.
Last Autumn we were called by Dr T André , who acquired a newly refurbished flat in Congleton in September 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Congleton with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 collected yearly. The lease ran out in 2100. Given that there were 74 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.