With a long leasehold premises in Essington, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are fewer than 80 years left. Anyone in Essington with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has fewer than 80 years outstanding, under the current Act the freeholder can calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Essington 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 reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Essington leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Toby owned a studio apartment in Essington being sold with a lease of a little over fifty eight years unexpired. Toby informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Toby to invoke his statutory right. Toby procured expert advice and secured an acceptable deal informally and readily saleable.
Mr and Mrs. N Norbert bought a purpose-built flat in Essington in June 2001. The question was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparable properties in Essington with an extended lease were valued about £250,000. The mid-range ground rent payable was £50 collected monthly. The lease lapsed in 2094. Having 69 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
In 2012 we were phoned by Mr L Moore who, having completed a garden apartment in Essington in July 2011. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable homes in Essington with a long lease were valued about £285,000. The average amount of ground rent was £55 collected every twelve months. The lease finished in 2105. Considering the 80 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.