Endon leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the current lease drops lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Endon will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some cases you may not be entitled. There are also strict deadlines and steps to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Endon with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Lloyds TSB Scotland | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Endon,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Endon valuers.
Last October Jude, started to get close to the 80-year threshold with the lease on his first floor flat in Endon. Having bought his property two decades ago, the lease term was of little significance. Luckily, he noticed he would imminently be paying an inflated amount for Extending the lease. Jude was able to extend his lease at the eleventh hour in March. Jude and the freeholder subsequently settled on an amount of £6,000 . If the lease had dipped below 80 years, the premium would have increased by at least £1,125.
Mr T Bernard was assigned a lease of a garden apartment in Endon in March 2005. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative premises in Endon with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £45 invoiced annually. The lease termination date was in 2094. Considering the 69 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.
In 2009 we were approached by Mr L Vincent who, having owned a purpose-built apartment in Endon in October 1995. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative properties in Endon with an extended lease were worth £216,000. The mid-range amount of ground rent was £60 collected annually. The lease finished in 2083. Having 58 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including fees.