Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Peasedown St John. Inevitably, the length of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the residence needs to be sold 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 Peasedown St John have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please give careful deliberation before putting off your Peasedown St John lease extension. Putting off the cost now only increases the price you will ultimately incur to extend your lease
Leasehold premises in Peasedown St John with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Peasedown St John 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.
Following unsuccessful correspondence with the freeholder of her studio flat in Peasedown St John, Freya commenced the lease extension process as the 80 year deadline was quickly advancing. The legal work completed in August 2009. The landlord’s charges were kept to an absolute minimum.
In 2009 we were approached by Mr and Mrs. N Lefèvre who, having moved into a one bedroom apartment in Peasedown St John in May 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Identical properties in Peasedown St John with a long lease were valued about £200,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease terminated in 2086. Considering the 60 years remaining we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.
Mr Evan Murphy moved into a one bedroom flat in Peasedown St John in January 2003. We are asked if we could estimate the price could be for a ninety year lease extension. Comparative properties in Peasedown St John with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 billed monthly. The lease lapsed on 7 July 2097. Taking into account 71 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.