The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Ipswich may extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Ipswich lease extension. Putting off the costs now simply escalates the premium you will eventually have to pay for a lease extension.
Leasehold properties in Ipswich with more than one hundred years outstanding on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Yorkshire 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. |
The conveyancers that we work with handle Ipswich 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.
After unsuccessful discussions with the freeholder of her ground floor apartment in Ipswich, Paige commenced the lease extension process as the 80 year mark was rapidly approaching. The legal work completed in October 2011. The landlord’s fees were kept to an absolute minimum.
Last Autumn we were called by Mr and Mrs. I Kelly , who completed a purpose-built flat in Ipswich in January 2003. The question was if we could estimate the premium could be for a 90 year extension to my lease. Similar flats in Ipswich with 100 year plus lease were in the region of £243,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease ran out on 26 May 2089. Considering the 63 years remaining we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of costs.
Last month we were called by Mrs E Bonnet , who was assigned a lease of a basement flat in Ipswich in September 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Similar premises in Ipswich with a long lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected per annum. The lease elapsed in 2078. Taking into account 52 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus costs.