As the length of the unexpired term of a Long Itchington residential lease decreases so does its value and therefore the value of your property. If the lease has, more than one hundred years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. The majority of flat owners in Long Itchington will meet the qualifying criteria; however a lawyer will be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Long Itchington with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 lawyers that we work with undertake Long Itchington 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 Adam, came seriously close to the 80-year mark with the lease on his ground floor flat in Long Itchington. In buying his property two decades ago, the length of the lease was of no bearing. by good luck, he recognised he needed to take steps soon on Extending the lease. Adam arranged for a lease extension just in the nick of time in September. Adam and the landlord subsequently agreed on sum of £5,500 . If he had missed the deadline, the amount would have increased by a minimum £1,125.
Last year we were approach by Mr Mason Lefebvre , who owned a one bedroom flat in Long Itchington in May 2009. The question was if we could estimate the price would be to extend the lease by 90 years. Identical premises in Long Itchington with 100 year plus lease were in the region of £225,800. The average ground rent payable was £60 collected per annum. The lease expired in 2085. Having 60 years left we estimated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 plus legals.
In 2014 we were called by Mr and Mrs. W Norbert who, having moved into a newly refurbished flat in Long Itchington in January 2004. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical residencies in Long Itchington with 100 year plus lease were valued around £210,000. The mid-range amount of ground rent was £50 collected per annum. The lease concluded on 17 October 2105. Given that there were 80 years remaining we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.