On the balance of probabilities if you own a flat in Lydiate and Melling you actually own a long leasehold interest over your property
Leasehold properties in Lydiate and Melling with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Lydiate and Melling can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Lydiate and Melling lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Riley owned a 2 bedroom apartment in Lydiate and Melling on the market with a lease of a little over 72 years remaining. Riley informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Riley to invoke his statutory right. Riley obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Last April we were phoned by Mr and Mrs. K Bernard , who purchased a recently refurbished flat in Lydiate and Melling in June 2001. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar homes in Lydiate and Melling with a long lease were in the region of £245,000. The average ground rent payable was £45 invoiced every twelve months. The lease terminated in 2093. Having 68 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
In 2012 we were approached by Mr Thomas Rogers who, having acquired a basement flat in Lydiate and Melling in May 2011. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparable flats in Lydiate and Melling with 100 year plus lease were valued around £280,000. The average ground rent payable was £55 billed yearly. The lease expired on 5 October 2104. Having 79 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.