With a long leasehold property in East Cowes, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Leasehold owners in East Cowes with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When the lease term has less than eighty years outstanding, under the relevant legislation the freeholder can calculate and charge a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in East Cowes 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 property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Lease extensions in East Cowes can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with East Cowes lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the freeholder of her garden flat in East Cowes, Gemma started the lease extension process as the 80 year threshold was swiftly nearing. The transaction was finalised in November 2006. The landlord’s costs were restricted to less than six hundred pounds.
Last Summer we were contacted by Mr and Mrs. S Michel , who completed a newly refurbished flat in East Cowes in July 2001. The dilemma was if we could approximate the price could be for a 90 year lease extension. Similar flats in East Cowes with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced annually. The lease expired on 17 September 2101. Given that there were 75 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.
Last Autumn we were called by Mrs V Taylor , who acquired a basement apartment in East Cowes in October 2007. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparative properties in East Cowes with a long lease were worth £173,800. The average amount of ground rent was £65 invoiced monthly. The lease expiry date was in 2081. Considering the 55 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of legals.