Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Ireleth and Askam. Inevitably, the term of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Ireleth and Askam have the legal entitlement to extend the lease for a further 90 years in accordance with statute. Do give careful deliberation before putting off your Ireleth and Askam lease extension. Holding off that expense now likely increases the price you will eventually have to pay for a lease extension
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | 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 30 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 conveyancers that we work with procure Ireleth and Askam 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.
In 2014 Noah, came dangerously near to the eighty-year mark with the lease on his first floor apartment in Ireleth and Askam. In buying his home 18 years previously, the length of the lease was of little relevance. Luckily, he realised he needed to take steps soon on a lease extension. Noah extended the lease just under the wire in April. Noah and the freeholder subsequently agreed on sum of £5,500 . If he not met the deadline, the figure would have gone up by a minimum £1,100.
Mr and Mrs. L Bertrand was assigned a lease of a purpose-built apartment in Ireleth and Askam in July 2007. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Similar residencies in Ireleth and Askam with an extended lease were in the region of £208,200. The average amount of ground rent was £65 billed yearly. The lease came to a finish on 6 April 2087. Given that there were 61 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 not including fees.
Last month we were contacted by Mrs Isabelle Moreau , who acquired a purpose-built flat in Ireleth and Askam in August 2001. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparative residencies in Ireleth and Askam with an extended lease were valued around £260,000. The average ground rent payable was £50 invoiced yearly. The lease came to a finish on 11 January 2098. Having 72 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.