Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Longhope. Inevitably, the length of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Longhope have the right to extend the lease for an additional 90 years under statute. Do give due deliberation before putting off your Longhope lease extension. Holding off the cost now likely increases the price you will ultimately incur for a lease extension
Leasehold properties in Longhope with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Longhope,the lease extension experts 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 Longhope valuers.
Jackson was the the leasehold owner of a studio flat in Longhope on the market with a lease of fraction over 59 years left. Jackson on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Mrs I Walker purchased a one bedroom apartment in Longhope in August 2010. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical premises in Longhope with an extended lease were in the region of £210,000. The average ground rent payable was £50 billed per annum. The lease finished in 2105. Taking into account 80 years left we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.
Last Autumn we were contacted by Dr P Hill , who moved into a one bedroom flat in Longhope in July 1997. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative flats in Longhope with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £45 billed monthly. The lease concluded in 2094. Considering the 69 years left we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.