Unfortunately that a Longton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Longton property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be payable. Most flat owners in Longton will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold residencies in Longton with more than 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 buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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:
|
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Longton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Longton valuers.
Trailing protracted negotiations with the freeholder of her two bedroom apartment in Longton, Natasha commenced the lease extension process as the eighty year mark was rapidly coming. The transaction completed in August 2011. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. V Collins purchased a recently refurbished flat in Longton in May 2002. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Identical premises in Longton with a long lease were worth £235,200. The mid-range ground rent payable was £45 billed per annum. The lease termination date was in 2092. Considering the 66 years outstanding we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
Mr and Mrs. G White acquired a basement apartment in Longton in February 2000. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative properties in Longton with an extended lease were valued around £275,000. The average ground rent payable was £55 billed annually. The lease terminated on 12 July 2103. Taking into account 77 years remaining we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.