Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Earl Shilton. Inevitably, the length of lease left reduces over time. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying leaseholders in Earl Shilton have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Do give due deliberation before delaying your Earl Shilton lease extension. Holding off the cost now only increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Earl Shilton with more than one hundred years left 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Earl Shilton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Earl Shilton valuers.
Two years ago Oliver, started to get near to the eighty-year mark with the lease on his one bedroom flat in Earl Shilton. Having purchased his flat twenty years ago, the lease term was of minimal interest. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Oliver arranged for a lease extension just in the nick of time in June. Oliver and the landlord in the end agreed on sum of £5,000 . If he failed to meet the deadline, the figure would have become more costly by a minimum £1,000.
In 2012 we were called by Mr and Mrs. M Moreau who, having owned a first floor flat in Earl Shilton in August 1996. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Similar properties in Earl Shilton with a long lease were worth £205,000. The mid-range ground rent payable was £50 invoiced per annum. The lease expired in 2104. Given that there were 79 years outstanding we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
Dr M Scott acquired a one bedroom apartment in Earl Shilton in March 2009. We are asked if we could estimate the price could be to prolong the lease by ninety years. Identical homes in Earl Shilton with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £65 billed monthly. The lease finished in 2093. Considering the 68 years unexpired we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.