Chances are that where you own a flat in Leek you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancers that we work with undertake Leek 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 conveyancing solicitor we work with provide it.
Half a year ago Kyle, started to get near to the eighty-year threshold with the lease on his basement apartment in Leek. Having purchased his flat two decades ago, the lease term was of minimal importance. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Kyle arranged for a lease extension just in the nick of time in January. Kyle and the landlord eventually agreed on a premium of £6,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £1,050.
Mr Stanley Lambert was assigned a lease of a ground floor flat in Leek in January 2002. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable premises in Leek with an extended lease were worth £275,000. The average ground rent payable was £55 collected quarterly. The lease finished on 9 January 2102. Having 76 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
In 2011 we were e-mailed by Dr G Morris who, having acquired a recently refurbished apartment in Leek in May 2008. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable residencies in Leek with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 billed annually. The lease elapsed in 2082. Taking into account 56 years remaining we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of legals.