Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Deepcar. Clearly, the period of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the property needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Deepcar have the right to extend the lease for an additional 90 years under legislation. Do give careful consideration before putting off your Deepcar lease extension. Putting off the cost now likely increases the price you will eventually have to pay for a lease extension
Leasehold premises in Deepcar with more than 100 years outstanding on the lease are sometimes 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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
Lease extensions in Deepcar can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Deepcar lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Andrew owned a studio flat in Deepcar on the market with a lease of just over 61 years unexpired. Andrew on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Andrew to invoke his statutory right. Andrew procured expert advice and secured satisfactory deal without going to tribunal and sell the property.
Mr and Mrs. S White was assigned a lease of a newly refurbished flat in Deepcar in August 2000. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable premises in Deepcar with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease ran out in 2096. Having 71 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
Mr Arthur Rogers took over the lease of a first floor flat in Deepcar in August 2009. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative homes in Deepcar with an extended lease were valued around £254,200. The mid-range amount of ground rent was £60 collected every twelve months. The lease termination date was on 15 August 2076. Given that there were 51 years left we calculated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 not including legals.