Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Countesthorpe. Inevitably, the length of lease left reduces over time. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible leaseholders in Countesthorpe have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give due attention before putting off your Countesthorpe lease extension. Holding off the cost now likely increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Countesthorpe with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Countesthorpe,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Countesthorpe valuers.
Trailing protracted negotiations with the landlord of her ground floor apartment in Countesthorpe, Aimee started the lease extension process just as the lease was coming close to the all-important eighty-year mark. The transaction was finalised in October 2006. The freeholder’s costs were restricted to approximately 650 GBP.
In 2010 we were called by Mr Isaac Anderson who, having bought a basement apartment in Countesthorpe in January 2003. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar flats in Countesthorpe with 100 year plus lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected yearly. The lease expired in 2102. Taking into account 76 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.
Dr P Collins bought a garden flat in Countesthorpe in August 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparable flats in Countesthorpe with a long lease were worth £257,800. The mid-range amount of ground rent was £65 billed annually. The lease came to a finish on 26 October 2091. Given that there were 65 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of expenses.