The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Inkberrow can extend the lease for a further 90 years in accordance with statute. Please think carefully before delaying your Inkberrow lease extension. Putting off the costs now simply escalates the price you will ultimately have to pay for a lease extension.
Leasehold residencies in Inkberrow 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Inkberrow can be a difficult process. We recommend you get guidance from a conveyancing solicitor 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 dealing with Inkberrow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful discussions with the freeholder of her ground floor apartment in Inkberrow, Charlotte initiated the lease extension process just as her lease was nearing the critical 80-year deadline. The lease extension completed in January 2013. The freeholder’s costs were kept to an absolute minimum.
Last March we were phoned by Ms M Roux , who completed a purpose-built flat in Inkberrow in January 2002. We are asked if we could approximate the price could be to extend the lease by ninety years. Identical properties in Inkberrow with an extended lease were worth £270,000. The average ground rent payable was £55 billed every twelve months. The lease ran out on 1 July 2102. Taking into account 76 years as a residual term we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Last February we were phoned by Mr and Mrs. A Lewis , who purchased a studio apartment in Inkberrow in October 2000. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar premises in Inkberrow with an extended lease were valued around £176,200. The average ground rent payable was £65 collected per annum. The lease came to a finish on 9 August 2082. Taking into account 56 years left we approximated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of expenses.