With a long leasehold premises in Euxton, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Anyone in Euxton with a lease nearing 81 years left should seriously consider extending it without delay. Once a lease has fewer than 80 years outstanding, under the relevant statute the landlord can calculate and charge a larger premium, based on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Euxton with more than one hundred years left 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Euxton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Zachary, came very near to the eighty-year mark with the lease on his studio apartment in Euxton. In buying his flat twenty years previously, the length of the lease was of no relevance. As luck would have it, he noticed he needed to take steps soon on a lease extension. Zachary arranged for a lease extension just under the wire last January. Zachary and the freeholder via the managing agents eventually agreed on an amount of £5,500 . If the lease had fallen lower than eighty years, the amount would have become more exhorbitant by a minimum £1,000.
Mrs Maisie Girard bought a purpose-built apartment in Euxton in September 2004. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparative residencies in Euxton with a long lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease lapsed in 2104. Given that there were 79 years remaining we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
Last year we were called by Mr Jack Davies , who completed a studio flat in Euxton in June 1998. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical residencies in Euxton with a long lease were in the region of £275,000. The average ground rent payable was £65 invoiced yearly. The lease lapsed in 2093. Having 68 years as a residual term we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.