Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Lichfield. Inevitably, the term of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Lichfield have the legal entitlement to extend the lease for an additional 90 years under statute. You should give careful deliberation before putting off your Lichfield lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
Leasehold residencies in Lichfield with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Lichfield can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Lichfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Aiden, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Lichfield. Having purchased his flat two decades ago, the lease term was of minimal relevance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Aiden arranged for a lease extension just under the wire last April. Aiden and the freeholder via the managing agents eventually agreed on the final figure of £5,500 . If he had missed the deadline, the figure would have increased by at least £1,125.
Mr Omar Taylor moved into a basement flat in Lichfield in March 2005. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Identical premises in Lichfield with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease expiry date was on 24 May 2101. Having 75 years as a residual term we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.
Last March we were approach by Mr and Mrs. R Hill , who bought a purpose-built apartment in Lichfield in January 2012. We are asked if we could estimate the price would be to extend the lease by an additional years. Identical properties in Lichfield with 100 year plus lease were worth £252,800. The mid-range amount of ground rent was £65 collected monthly. The lease ran out in 2091. Taking into account 65 years remaining we approximated the premium to the landlord for the lease extension to be between £17,100 and £19,800 not including fees.