Irchester leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Irchester residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Irchester you must investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Irchester leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is effected without delay
Leasehold premises in Irchester with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Irchester leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the freeholder of her garden apartment in Irchester, Alisha commenced the lease extension process just as the lease was nearing the crucial eighty-year mark. The legal work was finalised in October 2006. The freeholder’s fees were restricted to less than 600 GBP.
Last Spring we were phoned by Mr and Mrs. T Torres , who acquired a newly refurbished apartment in Irchester in August 2012. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical homes in Irchester with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £45 collected quarterly. The lease ended on 12 July 2095. Having 69 years outstanding we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.
In 2013 we were approached by Ms Bethany Bertrand who, having completed a studio apartment in Irchester in August 1997. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Identical residencies in Irchester with an extended lease were worth £216,000. The average amount of ground rent was £60 billed per annum. The lease concluded on 2 February 2084. Considering the 58 years outstanding we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of costs.