On the balance of probabilities where you own a flat in Droylsden you actually own a long leasehold interest over your property
Leasehold premises in Droylsden with in excess of one hundred years left on the lease are often 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 buying the reversionary interest unless savings on ground rent and estate 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Droylsden 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 lawyer we work with provide it.
Trailing lengthy correspondence with the freeholder of her studio apartment in Droylsden, Poppy started the lease extension process as the 80 year deadline was rapidly nearing. The transaction was finalised in May 2008. The landlord’s costs were kept to an absolute minimum.
Last Spring we were contacted by Dr Caleb Gómez , who bought a one bedroom flat in Droylsden in March 2006. The question was if we could estimate the premium could be for a ninety year lease extension. Comparative premises in Droylsden with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease elapsed in 2105. Having 79 years unexpired we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.
Last Christmas we were approach by Mr and Mrs. O Young , who moved into a one bedroom apartment in Droylsden in July 1998. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Droylsden with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 collected quarterly. The lease termination date was on 28 February 2094. Considering the 68 years left we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.