When it comes to long leasehold premises in Haslington, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years remaining. Anyone in Haslington with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has less than 80 years left, under the current Act the landlord is entitled to calculate and levy a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Haslington with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Haslington 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 lawyer we work with provide it.
Michael was the the leasehold owner of a 2 bedroom apartment in Haslington on the market with a lease of just over 61 years left. Michael on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Michael to exercise his statutory right. Michael procured expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
Last month we were contacted by Dr Dexter Richardson , who acquired a newly refurbished flat in Haslington in July 1997. We are asked if we could estimate the price could be for a 90 year lease extension. Similar homes in Haslington with a long lease were in the region of £243,000. The mid-range ground rent payable was £65 billed every twelve months. The lease terminated on 4 March 2089. Having 63 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of legals.
Dr Mollie Morris owned a ground floor flat in Haslington in September 2001. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical properties in Haslington with an extended lease were in the region of £181,600. The mid-range ground rent payable was £55 billed annually. The lease expiry date was in 2078. Given that there were 52 years left we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus costs.