Irthlingborough leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Irthlingborough tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Irthlingborough you really ought to check if your lease has between 70 and ninety years left. There are compelling reasons why a Irthlingborough leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is actioned without delay
Leasehold properties in Irthlingborough with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| 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 lawyers that we work with procure Irthlingborough 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.
Off the back of protracted discussions with the freeholder of her purpose-built apartment in Irthlingborough, Robyn commenced the lease extension process just as the lease was approaching the critical 80-year mark. The legal work was finalised in March 2010. The landlord’s charges were negotiated to approximately 550 pounds.
Mrs J Lewis took over the lease of a one bedroom flat in Irthlingborough in June 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparative residencies in Irthlingborough with 100 year plus lease were valued about £265,000. The average amount of ground rent was £50 billed monthly. The lease terminated on 11 April 2098. Given that there were 73 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.
Last Christmas we were phoned by Mrs Mollie Nelson , who purchased a one bedroom flat in Irthlingborough in September 2002. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar residencies in Irthlingborough with an extended lease were valued around £264,000. The average ground rent payable was £60 billed every twelve months. The lease concluded in 2078. Having 53 years left we calculated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 exclusive of fees.