Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in East Harling. Inevitably, the period of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the flat or house needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in East Harling have the right to extend the lease for an additional ninety years under legislation. You should give careful deliberation before delaying your East Harling lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold properties in East Harling with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure East Harling 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.
Twenty four months ago Ethan, started to get close to the 80-year threshold with the lease on his one bedroom apartment in East Harling. In buying his flat 19 years previously, the lease term was of little bearing. Fortunately, he became aware that he needed to take action soon on Extending the lease. Ethan arranged for a lease extension at the eleventh hour in May. Ethan and the freeholder eventually settled on the final figure of £5,000 . If the lease had dipped to less than 80 years, the price would have increased by at least £1,000.
Last Christmas we were called by Mr and Mrs. O Leroy , who bought a recently refurbished flat in East Harling in November 2009. We are asked if we could estimate the premium could be to extend the lease by ninety years. Comparable premises in East Harling with 100 year plus lease were worth £191,000. The average amount of ground rent was £65 billed per annum. The lease elapsed in 2084. Considering the 58 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 exclusive of legals.
Mr and Mrs. B Wood completed a first floor apartment in East Harling in October 2003. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Identical properties in East Harling with 100 year plus lease were valued around £250,000. The average amount of ground rent was £50 invoiced annually. The lease ended on 1 July 2095. Taking into account 69 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.