When it comes to long leasehold property in Glenfield, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted 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 rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are less than eighty years left. Anyone in Glenfield with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. Once a lease has below eighty years remaining, under the current statute the landlord is entitled to calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Glenfield with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 will provide you enhanced control over the value of your Glenfield leasehold, as your property will be more valuable and marketable in respect 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.
Off the back of unsuccessful correspondence with the freeholder of her two bedroom flat in Glenfield, Laura initiated the lease extension process just as the lease was nearing the crucial eighty-year deadline. The lease extension was concluded in April 2011. The landlord’s costs were negotiated to about 550 pounds.
In 2013 we were contacted by Dr W Bennett who, having owned a first floor flat in Glenfield in November 1997. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Identical flats in Glenfield with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £45 collected quarterly. The lease expired in 2095. Considering the 69 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.
Last Autumn we were approach by Mrs T Vincent , who moved into a studio flat in Glenfield in April 2002. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Comparative properties in Glenfield with a long lease were valued about £216,000. The average amount of ground rent was £60 invoiced monthly. The lease elapsed in 2084. Taking into account 58 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus fees.