For anyone whose Leegomery flat is held on a long lease, the message is clear – if you do nothing, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
Leasehold premises in Leegomery with more than 100 years left 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Leegomery lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Following lengthy correspondence with the landlord of her ground floor apartment in Leegomery, Zoe started the lease extension process just as the lease was nearing the crucial 80-year deadline. The lease extension completed in September 2011. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were contacted by Mr and Mrs. G Johnson who, having bought a purpose-built flat in Leegomery in October 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical properties in Leegomery with an extended lease were valued about £183,600. The average amount of ground rent was £65 collected per annum. The lease terminated on 28 November 2082. Given that there were 57 years outstanding we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.
Last month we were e-mailed by Dr Rosie Laurent , who owned a recently refurbished apartment in Leegomery in March 2003. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Similar properties in Leegomery with 100 year plus lease were valued about £250,000. The average amount of ground rent was £50 invoiced per annum. The lease ended on 20 May 2093. Considering the 68 years outstanding we approximated the premium to the landlord to extend the lease to be within £10,500 and £12,000 exclusive of expenses.