Chances are that if you own a flat in Earley you actually own a long leasehold interest over your property
Leasehold premises in Earley with in excess of one hundred years left 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Earley leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Seth, started to get near to the eighty-year mark with the lease on his basement apartment in Earley. In buying his home two decades ago, the unexpired term was of little bearing. As luck would have it, he recognised he needed to take steps soon on a lease extension. Seth arranged for a lease extension just under the wire in August. Seth and the freeholder via the management company in the end agreed on sum of £5,500 . If he failed to meet the deadline, the sum would have become more exhorbitant by at least £875.
Last Spring we were phoned by Mr and Mrs. L Ramírez , who took over the lease of a studio flat in Earley in April 2003. The question was if we could approximate the premium would be for a ninety year extension to my lease. Similar flats in Earley with a long lease were worth £233,200. The average amount of ground rent was £60 billed monthly. The lease lapsed in 2087. Having 61 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 not including fees.
In 2013 we were called by Mr W Peterson who, having completed a ground floor flat in Earley in September 2007. The dilemma was if we could estimate the price would be to extend the lease by an additional years. Comparative properties in Earley with an extended lease were in the region of £171,800. The mid-range ground rent payable was £55 invoiced annually. The lease ended on 17 November 2076. Having 50 years unexpired we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of fees.