On the balance of probabilities where you own a flat in Lacock you actually own a long leasehold interest over your property
Leasehold premises in Lacock with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | 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 |
| 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. |
Retaining our service gives you increased control over the value of your Lacock leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jude owned a studio flat in Lacock being marketed with a lease of a few days over 72 years unexpired. Jude informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jude to invoke his statutory right. Jude procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.
Last month we were contacted by Dr Evan Lambert , who bought a first floor apartment in Lacock in March 1997. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparable premises in Lacock with an extended lease were in the region of £223,400. The mid-range ground rent payable was £60 invoiced per annum. The lease ran out in 2084. Given that there were 59 years outstanding we calculated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of costs.
In 2013 we were called by Mr and Mrs. K Mitchell who, having purchased a one bedroom apartment in Lacock in June 1997. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Comparative residencies in Lacock with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected yearly. The lease elapsed in 2104. Considering the 79 years remaining we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.