With a domestic leasehold premises in Coven, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Leasehold owners in Coven with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once a lease has under eighty years left, under the relevant Act the landlord is entitled to calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Coven with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service 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. |
| Bank of Scotland | 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Coven,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Coven valuers.
Luke owned a conversion flat in Coven on the market with a lease of a little over 72 years unexpired. Luke informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Luke to exercise his statutory right. Luke procured expert advice and secured an acceptable resolution without going to tribunal and sell the flat.
Ms Hollie Rivera acquired a purpose-built flat in Coven in October 1996. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative premises in Coven with a long lease were valued around £181,600. The mid-range ground rent payable was £55 billed per annum. The lease lapsed in 2077. Taking into account 52 years unexpired we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including costs.
Last year we were approach by Mrs H Michel , who acquired a one bedroom apartment in Coven in April 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Coven with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 invoiced quarterly. The lease elapsed on 21 February 2097. Given that there were 72 years unexpired we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including professional charges.