With a long leasehold premises in Longridge, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Residents in Longridge with a lease approaching 81 years left should seriously consider extending it sooner rather than later. Once the lease term has less than eighty years remaining, under the current statute the freeholder can calculate and charge a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Longridge with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold 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. |
| 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 |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
16 months ago Luke, started to get close to the 80-year threshold with the lease on his two bedroom flat in Longridge. In buying his home twenty years ago, the unexpired term was of little interest. Luckily, he noticed he needed to take steps soon on Extending the lease. Luke extended the lease just under the wire in August. Luke and the landlord who owned the flat above subsequently settled on sum of £5,500 . If he had missed the deadline, the sum would have escalated by at least £1,150.
In 2014 we were approached by Mr and Mrs. M Lefèvre who, having owned a newly refurbished apartment in Longridge in July 1998. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical properties in Longridge with 100 year plus lease were valued around £295,000. The average ground rent payable was £50 invoiced monthly. The lease terminated on 11 March 2100. Having 75 years outstanding we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.
In 2013 we were contacted by Mrs Rosie Gunderson who, having moved into a first floor flat in Longridge in October 2002. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparative residencies in Longridge with 100 year plus lease were worth £250,400. The mid-range ground rent payable was £65 invoiced quarterly. The lease finished in 2089. Taking into account 64 years remaining we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 not including legals.