Chances are that if you own a flat in Leiston you actually own a long leasehold interest over your property
Leasehold properties in Leiston with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Using our service gives you increased control over the value of your Leiston leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
William owned a 2 bedroom apartment in Leiston on the market with a lease of a few days over sixty years outstanding. William on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were William to exercise his statutory right. William obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the flat.
Last Christmas we were e-mailed by Dr Max David , who moved into a garden flat in Leiston in October 2011. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable residencies in Leiston with 100 year plus lease were valued about £191,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease concluded in 2083. Having 58 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of expenses.
Last Summer we were e-mailed by Dr Jason Gunderson , who acquired a ground floor flat in Leiston in August 2000. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative premises in Leiston with 100 year plus lease were valued around £250,000. The average ground rent payable was £50 billed yearly. The lease came to a finish on 19 August 2094. Having 69 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.