Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Fulwood and Elston. Inevitably, the length of lease left shortens over time. This is often overlooked and only becomes a problem when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Fulwood and Elston have the legal entitlement to extend the lease for a further 90 years in accordance with statute. You should give due consideration before putting off your Fulwood and Elston lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold properties in Fulwood and Elston with more than 100 years remaining 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 premises. In such situations there is often little upside in 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Fulwood and Elston,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fulwood and Elston valuers.
Matthew owned a high value apartment in Fulwood and Elston being marketed with a lease of a few days over 59 years left. Matthew on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Matthew to exercise his statutory right. Matthew obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last Winter we were e-mailed by Mr and Mrs. R Lewis , who completed a studio apartment in Fulwood and Elston in January 1995. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Fulwood and Elston with an extended lease were in the region of £285,000. The average amount of ground rent was £55 billed monthly. The lease lapsed on 13 October 2105. Given that there were 79 years left we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.
Dr Eliot Roux was assigned a lease of a first floor apartment in Fulwood and Elston in January 2005. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Similar premises in Fulwood and Elston with 100 year plus lease were worth £193,400. The mid-range ground rent payable was £65 billed quarterly. The lease terminated on 5 October 2085. Considering the 59 years remaining we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including professional charges.