For those whose Lancaster flat is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.
Leasehold premises in Lancaster with in excess of 100 years outstanding on the lease are sometimes 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 freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 30 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. |
Irrespective of whether you are a tenant or a landlord in Lancaster,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lancaster valuers.
Last year Kyle, came critically near to the 80-year threshold with the lease on his one bedroom apartment in Lancaster. In buying his home two decades ago, the lease term was of little relevance. by good luck, he became aware that he needed to take action soon on Extending the lease. Kyle extended the lease just ahead of time last September. Kyle and the freeholder in the end agreed on sum of £6,000 . If the lease had dropped to less than eighty years, the amount would have gone up by at least £1,100.
In 2009 we were contacted by Ms Chelsea Gómez who, having acquired a recently refurbished flat in Lancaster in October 1999. We are asked if we could estimate the price would be to prolong the lease by 90 years. Identical properties in Lancaster with an extended lease were in the region of £191,400. The mid-range amount of ground rent was £55 invoiced per annum. The lease end date was in 2080. Taking into account 54 years left we approximated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 not including legals.
Last January we were called by Mr U Michel , who bought a first floor apartment in Lancaster in March 1997. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Lancaster with a long lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired on 7 April 2100. Considering the 74 years remaining we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.