On the balance of probabilities if you own a flat in Friday Hill you actually own a long leasehold interest over your property
Leasehold properties in Friday Hill with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Friday Hill lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last year Finn, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Friday Hill. Having bought his home two decades ago, the length of the lease was of little concern. Fortunately, he noticed he would soon be paying way over the odds for a lease extension. Finn was able to extend his lease just under the wire in June. Finn and the landlord who owned the flat above eventually agreed on sum of £5,000 . If he had missed the deadline, the price would have gone up by a minimum £850.
Mr and Mrs. W King purchased a basement apartment in Friday Hill in September 2011. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparable premises in Friday Hill with an extended lease were in the region of £218,000. The average amount of ground rent was £45 invoiced every twelve months. The lease termination date was on 22 September 2089. Considering the 63 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of legals.
Last Spring we were called by Mrs F Parker , who purchased a studio apartment in Friday Hill in January 2004. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Similar flats in Friday Hill with a long lease were in the region of £265,000. The mid-range ground rent payable was £55 collected yearly. The lease elapsed on 13 March 2100. Considering the 74 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.