There is no doubt about it a leasehold flat or house in Ingatestone is a wasting asset as a result of the shortening lease. If the lease has, in excess of one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Ingatestone will meet the qualifying criteria; that being said a lawyer should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Ingatestone with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Ingatestone 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.
Last year Liam, came dangerously near to the 80-year mark with the lease on his studio flat in Ingatestone. Having bought his property two decades ago, the lease term was of little concern. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Liam arranged for a lease extension at the eleventh hour in June. Liam and the freeholder via the managing agents in the end agreed on an amount of £5,000 . If he failed to meet the deadline, the price would have increased by at least £925.
Mr and Mrs. H Reed completed a recently refurbished flat in Ingatestone in August 2008. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Ingatestone with a long lease were in the region of £235,200. The mid-range amount of ground rent was £45 invoiced quarterly. The lease ended on 18 July 2092. Having 66 years left we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.
In 2013 we were called by Dr Connor Gómez who, having bought a first floor apartment in Ingatestone in September 2004. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparative homes in Ingatestone with an extended lease were in the region of £275,000. The average ground rent payable was £55 invoiced per annum. The lease terminated in 2103. Taking into account 77 years unexpired we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.