When it comes to residential leasehold property in Longfield, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are less than eighty years left. Anyone in Longfield with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once a lease has below 80 years remaining, under the current statute the freeholder is entitled to calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Longfield with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Irrespective of whether you are a tenant or a landlord in Longfield,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Longfield valuers.
During the course of the last few months Jayden, started to get close to the 80-year threshold with the lease on his studio apartment in Longfield. Having purchased his home two decades ago, the unexpired term was of little relevance. Fortunately, he recognised he needed to take action soon on a lease extension. Jayden arranged for a lease extension at the eleventh hour in January. Jayden and the landlord ultimately agreed on an amount of £6,000 . If he failed to meet the deadline, the amount would have become more costly by at least £900.
In 2009 we were contacted by Mrs D Davis who, having acquired a studio apartment in Longfield in May 2000. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Similar premises in Longfield with a long lease were valued around £254,200. The average amount of ground rent was £60 collected every twelve months. The lease lapsed in 2077. Considering the 51 years remaining we estimated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 plus costs.
Last Spring we were called by Mr and Mrs. R Patel , who completed a newly refurbished flat in Longfield in September 1995. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar premises in Longfield with a long lease were worth £210,600. The average ground rent payable was £45 invoiced monthly. The lease concluded on 24 June 2088. Considering the 62 years outstanding we approximated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including expenses.