With a residential leasehold premises in Lake, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Anyone in Lake with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has below eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Lake with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit 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. |
| Lloyds TSB Scotland | 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 75 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. |
Engaging our service will provide you increased control over the value of your Lake leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Luke, started to get close to the 80-year mark with the lease on his purpose- built apartment in Lake. In buying his property two decades ago, the unexpired term was of little relevance. Fortunately, he became aware that he would imminently be paying way over the odds for a lease extension. Luke arranged for a lease extension just under the wire in April. Luke and the freeholder via the managing agents in the end settled on a premium of £5,000 . If he failed to meet the deadline, the premium would have increased by a minimum £1,050.
In 2009 we were contacted by Mr and Mrs. R Walker who, having completed a one bedroom flat in Lake in March 2009. The question was if we could approximate the price could be for a 90 year extension to my lease. Identical homes in Lake with 100 year plus lease were in the region of £174,200. The average amount of ground rent was £55 billed monthly. The lease ran out in 2077. Taking into account 51 years unexpired we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of costs.
In 2009 we were called by Mr and Mrs. A Rodríguez who, having acquired a basement flat in Lake in January 2009. The question was if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical premises in Lake with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 billed yearly. The lease lapsed in 2097. Considering the 71 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.