Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Lanchester. Inevitably, the period of lease remaining shortens over time. This is often overlooked and only raises itself as an issue when the residence needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Lanchester have the legal entitlement to extend the lease for a further 90 years in accordance with statute. Please give due attention before delaying your Lanchester lease extension. Holding off that expense now only increases the price you will eventually incur for a lease extension
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 freeholder in Lanchester,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lanchester valuers.
Half a year ago Jack, came critically near to the eighty-year threshold with the lease on his two bedroom apartment in Lanchester. Having purchased his home 18 years ago, the lease term was of little bearing. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Jack extended the lease at the eleventh hour in January. Jack and the landlord ultimately settled on sum of £6,000 . If he not met the deadline, the figure would have become more exhorbitant by at least £925.
Mrs Madeleine Taylor bought a first floor apartment in Lanchester in March 1997. The question was if we could estimate the premium would be for a ninety year extension to my lease. Identical properties in Lanchester with a long lease were valued about £200,800. The average ground rent payable was £65 billed yearly. The lease ended on 21 September 2085. Considering the 60 years unexpired we approximated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 not including expenses.
Last Spring we were e-mailed by Mr V Fournier , who purchased a recently refurbished flat in Lanchester in July 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Comparative residencies in Lanchester with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed annually. The lease concluded in 2096. Having 71 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.