With a residential leasehold property in Irthlingborough, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are fewer than 80 years left. Anyone in Irthlingborough with a lease approaching 81 years remaining should seriously think of extending it sooner as opposed to later. When the lease term has under 80 years left, under the relevant legislation the landlord is entitled to calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Irthlingborough with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Irthlingborough leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Max owned a conversion apartment in Irthlingborough on the market with a lease of a little over 61 years remaining. Max informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Max to exercise his statutory right. Max procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.
Last September we were called by Mr and Mrs. N Lefèvre , who purchased a basement flat in Irthlingborough in September 1997. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Similar residencies in Irthlingborough with an extended lease were valued about £166,400. The mid-range amount of ground rent was £60 collected every twelve months. The lease terminated on 27 June 2079. Considering the 54 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus legals.
In 2013 we were approached by Dr W Evans who, having completed a one bedroom apartment in Irthlingborough in November 2000. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparable properties in Irthlingborough with 100 year plus lease were valued about £227,800. The mid-range amount of ground rent was £45 collected every twelve months. The lease came to a finish in 2090. Considering the 65 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.