Chances are that where you own a flat in Earley you actually own a long leasehold interest over your property
Leasehold residencies in Earley with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. 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 | |
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages |
Retaining our service gives you better control over the value of your Earley leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Seth, came precariously near to the 80-year threshold with the lease on his ground floor flat in Earley. In buying his home two decades ago, the lease term was of little significance. Thankfully, he noticed he would imminently be paying way over the odds for Extending the lease. Seth extended the lease just under the wire last August. Seth and the freeholder eventually agreed on sum of £5,000 . If the lease had descended to less than 80 years, the amount would have become more exhorbitant by at least £1,000.
Last Spring we were contacted by Ms L Jackson , who moved into a recently refurbished flat in Earley in October 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Earley with 100 year plus lease were in the region of £196,400. The average amount of ground rent was £55 invoiced yearly. The lease expiry date was in 2080. Taking into account 54 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 plus expenses.
Mr L Simon was assigned a lease of a one bedroom flat in Earley in May 2003. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable residencies in Earley with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed quarterly. The lease lapsed on 21 May 2100. Given that there were 74 years remaining we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.