Inkberrow leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Inkberrow tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Inkberrow you really ought to check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Inkberrow leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is effected without delay
Leasehold residencies in Inkberrow with over 100 years left 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Birmingham Midshires | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Inkberrow 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 conveyancing solicitor we work with provide it.
Trailing protracted discussions with the landlord of her garden flat in Inkberrow, Ellen commenced the lease extension process as the 80 year mark was fast approaching. The lease extension was finalised in April 2007. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were phoned by Mr and Mrs. N Mercier who, having was assigned a lease of a studio apartment in Inkberrow in June 2010. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative premises in Inkberrow with a long lease were worth £220,400. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired in 2090. Having 64 years as a residual term we calculated the premium to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of professional charges.
Mr and Mrs. G Kelly took over the lease of a newly refurbished apartment in Inkberrow in September 2002. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparable properties in Inkberrow with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed quarterly. The lease lapsed in 2100. Given that there were 74 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.