Countesthorpe leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Countesthorpe enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Countesthorpe you must check if your lease has between seventy and 90 years left. There are good reasons why a Countesthorpe flat owner with a lease having around eighty years remaining should take action to ensure that a lease extension is actioned without delay
Leasehold properties in Countesthorpe with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with handle Countesthorpe 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 conveyancer we work with provide it.
Nathaniel owned a 2 bedroom apartment in Countesthorpe being sold with a lease of a little over sixty years left. Nathaniel informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr Daniel Bertrand was assigned a lease of a studio apartment in Countesthorpe in April 2005. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar properties in Countesthorpe with 100 year plus lease were worth £275,000. The average amount of ground rent was £65 invoiced every twelve months. The lease lapsed in 2094. Having 68 years remaining we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including legals.
Mr and Mrs. P Girard took over the lease of a garden apartment in Countesthorpe in April 2009. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparable properties in Countesthorpe with a long lease were in the region of £208,600. The average amount of ground rent was £60 invoiced monthly. The lease finished in 2083. Considering the 57 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus professional charges.