Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Market Rasen. Inevitably, the length of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the property has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible leaseholders in Market Rasen have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. You should give due deliberation before delaying your Market Rasen lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
Leasehold residencies in Market Rasen with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Market Rasen,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Market Rasen valuers.
Alfie owned a conversion flat in Market Rasen on the market with a lease of a little over 59 years unexpired. Alfie informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alfie to exercise his statutory right. Alfie obtained expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Mr and Mrs. S Thomas moved into a purpose-built flat in Market Rasen in April 2011. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative properties in Market Rasen with an extended lease were worth £210,600. The mid-range ground rent payable was £45 invoiced quarterly. The lease lapsed on 26 August 2088. Taking into account 62 years remaining we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including professional charges.
In 2013 we were contacted by Mr and Mrs. V Murphy who, having owned a basement apartment in Market Rasen in August 1997. The question was if we could estimate the premium could be for a ninety year lease extension. Similar flats in Market Rasen with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 collected per annum. The lease came to a finish on 10 February 2099. Having 73 years unexpired we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.