On the balance of probabilities if you own a flat in North Hykeham you actually own a long leasehold interest over your property
Leasehold premises in North Hykeham with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake North Hykeham 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 lawyer we work with provide it.
Last year Jack, came critically near to the eighty-year threshold with the lease on his purpose- built flat in North Hykeham. In buying his flat twenty years previously, the length of the lease was of no interest. Fortunately, he recognised he would soon be paying way over the odds for a lease extension. Jack was able to extend his lease at the eleventh hour last April. Jack and the freeholder eventually agreed on sum of £5,000 . If he not met the deadline, the figure would have increased by at least £900.
Last Spring we were phoned by Dr G Collins , who was assigned a lease of a basement flat in North Hykeham in October 2012. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Similar flats in North Hykeham with 100 year plus lease were valued around £171,800. The mid-range ground rent payable was £55 collected every twelve months. The lease lapsed in 2075. Taking into account 50 years remaining we calculated the premium to the landlord to extend the lease to be within £33,300 and £38,400 not including costs.
In 2011 we were e-mailed by Mr and Mrs. T Collins who, having was assigned a lease of a recently refurbished flat in North Hykeham in September 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar premises in North Hykeham with an extended lease were valued around £280,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease ran out in 2095. Taking into account 70 years left we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.