The market value of Inkberrow leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than eighty years
Leasehold properties in Inkberrow with more than one hundred years unexpired on the lease are sometimes regarded as a ‘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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| 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 |
Lease extensions in Inkberrow can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Inkberrow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Charlie, started to get near to the eighty-year mark with the lease on his ground floor flat in Inkberrow. Having purchased his flat 19 years previously, the length of the lease was of little importance. Fortunately, he recognised he needed to take action soon on Extending the lease. Charlie arranged for a lease extension at the eleventh hour in April. Charlie and the freeholder via the management company eventually agreed on an amount of £5,000 . If he not met the deadline, the amount would have become more costly by at least £875.
Last year we were e-mailed by Mr Jude García , who owned a one bedroom flat in Inkberrow in April 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparable flats in Inkberrow with 100 year plus lease were valued about £166,400. The mid-range amount of ground rent was £60 invoiced quarterly. The lease lapsed in 2079. Taking into account 54 years unexpired we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including costs.
Mr and Mrs. R Lefèvre purchased a first floor flat in Inkberrow in August 1999. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable properties in Inkberrow with an extended lease were worth £227,800. The average ground rent payable was £45 collected annually. The lease termination date was on 14 November 2090. Given that there were 65 years left we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.