The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Lound have the right to extend the lease for an additional 90 years in accordance with legislation. Please give careful consideration before delaying your Lound lease extension. Putting off that expense now simply increases the premium you will eventually be required to pay to extend the lease.
Leasehold properties in Lound with more than one hundred years outstanding 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Lound 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.
George was the the leasehold proprietor of a studio flat in Lound on the market with a lease of fraction over 72 years left. George informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were George to exercise his statutory right. George obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
Last year we were contacted by Dr T Lefebvre , who bought a one bedroom flat in Lound in June 1999. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Similar residencies in Lound with an extended lease were valued about £264,000. The mid-range amount of ground rent was £60 invoiced quarterly. The lease terminated in 2078. Having 53 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 not including legals.
Ms U Khan moved into a purpose-built apartment in Lound in November 2002. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Lound with 100 year plus lease were in the region of £220,400. The mid-range amount of ground rent was £45 collected annually. The lease ended in 2089. Having 64 years left we estimated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 not including costs.