Chances are that where you own a flat in Limbury you actually own a long leasehold interest over your property
Leasehold premises in Limbury with in excess of one hundred years outstanding 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 property. 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 |
|---|---|
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Limbury can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Limbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jasper owned a conversion flat in Limbury on the market with a lease of fraction over 72 years remaining. Jasper on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Jasper to exercise his statutory right. Jasper procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Last July we were approach by Mr and Mrs. M Murphy , who completed a first floor apartment in Limbury in February 2010. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Comparable premises in Limbury with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced monthly. The lease ended in 2102. Given that there were 76 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Summer we were e-mailed by Dr W James , who took over the lease of a one bedroom apartment in Limbury in October 1998. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Comparative homes in Limbury with an extended lease were valued around £176,200. The average ground rent payable was £65 invoiced per annum. The lease expired in 2082. Given that there were 56 years remaining we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 not including expenses.