On the balance of probabilities where you own a flat in Dinnington you actually own a long leasehold interest over your property
Leasehold properties in Dinnington with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Dinnington,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dinnington valuers.
Blake owned a 2 bedroom flat in Dinnington being sold with a lease of a little over fifty eight years outstanding. Blake informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Blake to exercise his statutory right. Blake obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2009 we were phoned by Dr H Garcia who, having was assigned a lease of a studio apartment in Dinnington in November 2002. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable homes in Dinnington with an extended lease were in the region of £267,600. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ended on 17 January 2092. Having 67 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of expenses.
Mr and Mrs. G Mitchell purchased a purpose-built flat in Dinnington in September 2009. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar flats in Dinnington with 100 year plus lease were in the region of £208,600. The mid-range amount of ground rent was £60 invoiced annually. The lease concluded in 2082. Having 57 years unexpired we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus professional charges.