When it comes to domestic leasehold premises in Freshford, you are actually purchasing 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. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about 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 gets disproportionately more expensive notably when there are less than 80 years remaining. Leasehold owners in Freshford with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When a lease has under eighty years remaining, under the relevant legislation the landlord is entitled to calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Freshford with more than 100 years outstanding 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 purchasing the freehold unless savings on ground rent and maintenance 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. |
| Halifax | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Engaging our service gives you enhanced control over the value of your Freshford leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy discussions with the landlord of her two bedroom flat in Freshford, Isabella commenced the lease extension process just as her lease was approaching the crucial eighty-year threshold. The legal work completed in July 2005. The landlord’s costs were restricted to a tad over 550 GBP.
Last Winter we were contacted by Dr Ben Howard , who was assigned a lease of a garden apartment in Freshford in November 1998. The question was if we could estimate the price would be for a ninety year lease extension. Comparative premises in Freshford with 100 year plus lease were worth £280,000. The average ground rent payable was £45 collected yearly. The lease ran out on 4 July 2096. Given that there were 71 years outstanding we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.
Last year we were contacted by Mr and Mrs. O Davies , who moved into a one bedroom flat in Freshford in August 2002. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Freshford with 100 year plus lease were in the region of £225,800. The average amount of ground rent was £60 collected quarterly. The lease elapsed on 16 March 2085. Considering the 60 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £25,700 and £29,600 plus expenses.