With a residential leasehold property in Longridge, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be 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 as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Leasehold owners in Longridge with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has below eighty years left, under the relevant Act the landlord can calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Longridge with over 100 years unexpired on the lease are often 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 upside in buying the reversionary interest unless savings on ground rent and service charges merit 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. |
| 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:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancing solicitors that we work with procure Longridge 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.
Following unsuccessful correspondence with the freeholder of her ground floor apartment in Longridge, Katie commenced the lease extension process just as her lease was approaching the crucial 80-year threshold. The transaction was finalised in July 2007. The freeholder’s costs were negotiated to a tad over 600 GBP.
Last Summer we were e-mailed by Mr Liam Khan , who took over the lease of a ground floor apartment in Longridge in June 2009. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar homes in Longridge with 100 year plus lease were in the region of £223,400. The mid-range ground rent payable was £60 collected quarterly. The lease lapsed on 18 May 2085. Considering the 59 years unexpired we approximated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 not including legals.
Mr Muhammad Watson owned a garden apartment in Longridge in June 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparable flats in Longridge with 100 year plus lease were worth £205,000. The average ground rent payable was £50 collected yearly. The lease end date was in 2105. Taking into account 79 years outstanding we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.