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 , usually 99 or 125 years, although we have seen longer and shorter terms in Coven. Clearly, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the property needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Coven have the right to extend the lease for a further 90 years in accordance with legislation. Do give careful deliberation before putting off your Coven lease extension. Putting off the cost now only increases the price you will ultimately incur to extend your lease
Leasehold premises in Coven with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| The Mortgage Works |
The conveyancers that we work with handle Coven 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 conveyancing solicitor we work with provide it.
Leon owned a conversion apartment in Coven being sold with a lease of a little over sixty years unexpired. Leon informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Leon to invoke his statutory right. Leon obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.
Last Winter we were e-mailed by Mr and Mrs. M Johnson , who moved into a basement apartment in Coven in February 2005. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Identical properties in Coven with 100 year plus lease were valued about £240,600. The mid-range amount of ground rent was £65 invoiced yearly. The lease terminated in 2088. Taking into account 62 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of costs.
Mr and Mrs. T Edwards took over the lease of a one bedroom flat in Coven in November 1999. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative properties in Coven with an extended lease were valued around £174,200. The average ground rent payable was £55 collected annually. The lease came to a finish in 2077. Given that there were 51 years outstanding we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus legals.