Chances are that where you own a flat in Grange Over Sands you actually own a long leasehold interest over your property
Leasehold premises in Grange Over Sands with over 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Grange Over Sands 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 conveyancer we work with provide it.
Following unsuccessful correspondence with the landlord of her basement flat in Grange Over Sands, Megan started the lease extension process as the eighty year threshold was rapidly coming. The transaction completed in July 2014. The freeholder’s fees were kept to an absolute minimum.
Dr Isaac King acquired a garden flat in Grange Over Sands in October 2009. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable premises in Grange Over Sands with a long lease were in the region of £186,000. The average amount of ground rent was £65 billed per annum. The lease elapsed on 11 November 2084. Taking into account 58 years remaining we calculated the premium to the landlord to extend the lease to be between £24,700 and £28,600 plus expenses.
Mrs O Cook completed a first floor apartment in Grange Over Sands in January 2006. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical homes in Grange Over Sands with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease terminated on 15 January 2095. Taking into account 69 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.