Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Greasby. Clearly, the length of lease remaining reduces over time. This is often overlooked and only becomes a problem when the flat or house has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Greasby have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. You should give due deliberation before putting off your Greasby lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension
Leasehold residencies in Greasby with in excess of one hundred years unexpired 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
The lawyers that we work with procure Greasby 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.
After unsuccessful discussions with the landlord of her ground floor apartment in Greasby, Samantha commenced the lease extension process just as her lease was coming close to the crucial 80-year threshold. The legal work completed in March 2006. The landlord’s fees were kept to an absolute minimum.
In 2013 we were approached by Dr C Baker who, having owned a ground floor apartment in Greasby in April 1996. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical residencies in Greasby with a long lease were worth £173,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease finished in 2081. Taking into account 55 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of legals.
In 2011 we were called by Dr Lydia Miller who, having completed a first floor apartment in Greasby in November 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparative flats in Greasby with a long lease were valued about £235,200. The mid-range ground rent payable was £45 invoiced quarterly. The lease ran out on 17 January 2092. Having 66 years remaining we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.