On the balance of probabilities if you own a flat in Lostwithiel you actually own a long leasehold interest over your property
Leasehold residencies in Lostwithiel 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Yorkshire 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. |
The conveyancers that we work with handle Lostwithiel 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.
During the course of the last few months Archie, came precariously near to the 80-year mark with the lease on his two bedroom flat in Lostwithiel. Having bought his property two decades ago, the unexpired term was of minimal relevance. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Archie extended the lease just ahead of time last January. Archie and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If he had missed the deadline, the price would have increased by a minimum £975.
Last Spring we were phoned by Mr G Clark , who owned a ground floor apartment in Lostwithiel in November 2010. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Lostwithiel with 100 year plus lease were valued about £265,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease ended in 2098. Taking into account 73 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.
Last October we were phoned by Mr and Mrs. H Green , who completed a newly refurbished flat in Lostwithiel in February 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparable flats in Lostwithiel with an extended lease were worth £264,000. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed in 2078. Given that there were 53 years as a residual term we approximated the premium to the landlord to extend the lease to be within £37,100 and £42,800 not including costs.