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 fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Leegomery. Clearly, the term of lease remaining reduces over time. This may slip by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Eligible leaseholders in Leegomery have the right to extend the lease for a further 90 years under legislation. Please give careful consideration before putting off your Leegomery lease extension. Putting off the cost now simply increases the price you will ultimately incur for a lease extension
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a freeholder in Leegomery,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 in-depth market knowledge and the close ties they enjoy with Leegomery valuers.
Dylan owned a high value apartment in Leegomery on the market with a lease of just over 61 years left. Dylan on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Dylan to exercise his statutory right. Dylan obtained expert advice and secured satisfactory deal informally and readily saleable.
Ms H Wright completed a purpose-built flat in Leegomery in November 2006. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable homes in Leegomery with an extended lease were in the region of £193,400. The mid-range amount of ground rent was £65 invoiced annually. The lease ran out in 2085. Taking into account 59 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of fees.
Last Winter we were phoned by Dr M Mason , who completed a garden flat in Leegomery in April 1995. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable homes in Leegomery with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 collected yearly. The lease finished in 2096. Considering the 70 years left we approximated the premium to the landlord for the lease extension to be between £10,500 and £12,000 plus fees.