The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Lanchester have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do think carefully before delaying your Lanchester lease extension. Putting off the costs now simply escalates the price you will ultimately be required to pay for a lease extension.
Leasehold premises in Lanchester with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Nationwide Building Society |
Irrespective of whether you are a tenant or a freeholder in Lanchester,the lease extension experts 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 Lanchester valuers.
Andrew owned a 2 bedroom flat in Lanchester on the market with a lease of a few days over sixty years remaining. Andrew informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Andrew to exercise his statutory right. Andrew obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last month we were approach by Mr Omar Hall , who moved into a basement apartment in Lanchester in February 1995. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Comparable flats in Lanchester with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 billed monthly. The lease lapsed in 2083. Having 57 years unexpired we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.
In 2014 we were called by Dr D Walker who, having completed a first floor apartment in Lanchester in August 2011. The question was if we could estimate the premium would be to extend the lease by 90 years. Comparable premises in Lanchester with an extended lease were worth £245,000. The average amount of ground rent was £50 billed yearly. The lease finished in 2094. Taking into account 68 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.