Chances are that if you own a flat in Cornhill On Tweed you actually own a long leasehold interest over your property
Leasehold premises in Cornhill On Tweed with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Cornhill On Tweed leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Callum was the the leasehold proprietor of a studio apartment in Cornhill On Tweed being marketed with a lease of a few days over 72 years outstanding. Callum informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Callum to exercise his statutory right. Callum procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Dr Kelsey Bertrand bought a purpose-built flat in Cornhill On Tweed in October 2005. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Cornhill On Tweed with a long lease were worth £201,200. The mid-range amount of ground rent was £55 billed monthly. The lease expired in 2082. Taking into account 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus costs.
Mr and Mrs. H Brooks acquired a first floor apartment in Cornhill On Tweed in March 2012. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable flats in Cornhill On Tweed with a long lease were valued about £300,000. The mid-range ground rent payable was £50 billed every twelve months. The lease finished in 2102. Considering the 76 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.