Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Ivybridge. Inevitably, the length of lease remaining reduces over time. This is often overlooked and only becomes a problem when the property needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Ivybridge have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Do give due consideration before delaying your Ivybridge lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Ivybridge 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 conveyancer we work with provide it.
After protracted correspondence with the freeholder of her garden flat in Ivybridge, Katherine commenced the lease extension process just as the lease was nearing the crucial 80-year threshold. The transaction was concluded in January 2012. The freeholder’s costs were negotiated to about 650 GBP.
Mr and Mrs. S Bell was assigned a lease of a recently refurbished flat in Ivybridge in June 2009. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Comparable residencies in Ivybridge with an extended lease were valued about £300,000. The average amount of ground rent was £50 billed quarterly. The lease lapsed in 2102. Considering the 76 years outstanding we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.
In 2010 we were phoned by Mr and Mrs. M Garcia who, having moved into a first floor flat in Ivybridge in April 2005. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Ivybridge with a long lease were worth £252,800. The mid-range ground rent payable was £65 billed yearly. The lease came to a finish in 2091. Having 65 years remaining we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including legals.