With a residential leasehold premises in Easton, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Residents in Easton with a lease drawing near to 81 years remaining should seriously consider extending it sooner rather than later. When a lease has fewer than eighty years outstanding, under the current Act the freeholder can calculate and levy a larger amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Easton with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Easton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Easton valuers.
Trailing protracted correspondence with the landlord of her basement flat in Easton, Phoebe started the lease extension process as the eighty year mark was rapidly advancing. The legal work was concluded in August 2015. The landlord’s charges were negotiated to about 650 GBP.
In 2011 we were phoned by Dr Harry Morgan who, having was assigned a lease of a one bedroom flat in Easton in July 2005. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical residencies in Easton with 100 year plus lease were valued about £210,600. The mid-range ground rent payable was £45 collected monthly. The lease terminated on 7 May 2088. Taking into account 62 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including expenses.
In 2010 we were contacted by Ms Megan Ward who, having purchased a purpose-built flat in Easton in May 2004. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparative homes in Easton with an extended lease were worth £260,000. The mid-range ground rent payable was £50 billed per annum. The lease finished in 2099. Taking into account 73 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.