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 , usually 99 or 125 years, although we have witnessed longer and shorter terms in Miles Platting. Inevitably, the term of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Miles Platting have the right to extend the lease for an additional ninety years in accordance with statute. You should give due deliberation before putting off your Miles Platting lease extension. Holding off that expense now only increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 lawyers that we work with handle Miles Platting 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 conveyancing solicitor we work with provide it.
Last Spring Blake, came perilously near to the 80-year mark with the lease on his first floor flat in Miles Platting. In buying his home 19 years ago, the lease term was of no bearing. by good luck, he noticed he would soon be paying an inflated amount for a lease extension. Blake arranged for a lease extension at the eleventh hour in July. Blake and the freeholder ultimately agreed on a premium of £5,500 . If the lease had slipped lower than 80 years, the premium would have increased by a minimum £875.
Dr H Simon owned a recently refurbished apartment in Miles Platting in February 2005. The dilemma was if we could approximate the price could be to extend the lease by ninety years. Identical flats in Miles Platting with an extended lease were worth £210,600. The average amount of ground rent was £45 billed per annum. The lease terminated on 18 July 2087. Having 62 years unexpired we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of costs.
Mrs Chelsea Thomas took over the lease of a first floor flat in Miles Platting in June 2001. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical properties in Miles Platting with a long lease were in the region of £265,000. The average ground rent payable was £50 invoiced per annum. The lease expired on 24 October 2098. Taking into account 73 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.