On the balance of probabilities where you own a flat in Empingham you actually own a long leasehold interest over your property
Leasehold residencies in Empingham with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Empingham leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ollie was the the leasehold proprietor of a high value flat in Empingham being sold with a lease of fraction over 72 years unexpired. Ollie on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Ollie to exercise his statutory right. Ollie procured expert legal guidance and secured satisfactory resolution informally and sell the property.
In 2012 we were contacted by Dr I Nelson who, having completed a first floor apartment in Empingham in June 2009. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical homes in Empingham with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 collected annually. The lease came to a finish in 2106. Taking into account 80 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.
Mrs J Edwards bought a ground floor flat in Empingham in July 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative homes in Empingham with 100 year plus lease were valued around £280,000. The average ground rent payable was £45 invoiced quarterly. The lease elapsed on 10 April 2095. Considering the 69 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of fees.