Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Irchester. Inevitably, the period of lease left shortens as time goes by. This may pass by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Irchester have the right to extend the lease for a further 90 years under legislation. Do give careful deliberation before delaying your Irchester lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Using our service will provide you better control over the value of your Irchester leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful discussions with the landlord of her ground floor apartment in Irchester, Molly initiated the lease extension process just as her lease was coming close to the crucial eighty-year mark. The legal work completed in May 2005. The freeholder’s charges were kept to an absolute minimum.
Dr Muhammad Howard bought a ground floor apartment in Irchester in June 2008. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparable premises in Irchester with a long lease were valued about £208,600. The mid-range ground rent payable was £60 invoiced yearly. The lease concluded on 2 April 2083. Considering the 57 years remaining we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of costs.
In 2009 we were phoned by Mr and Mrs. A Reed who, having took over the lease of a purpose-built flat in Irchester in July 1999. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Comparable flats in Irchester with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease ended in 2103. Taking into account 77 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.