With a domestic leasehold property in Perton, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Anyone in Perton with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. When a lease has below eighty years remaining, under the current Act the freeholder is entitled to calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Perton with over 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Perton 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.
Off the back of protracted negotiations with the landlord of her purpose-built apartment in Perton, Rebecca initiated the lease extension process as the 80 year mark was rapidly approaching. The lease extension completed in July 2006. The freeholder’s charges were kept to an absolute minimum.
Dr Jude Díaz was assigned a lease of a one bedroom apartment in Perton in March 1996. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar homes in Perton with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £45 billed per annum. The lease terminated in 2100. Taking into account 75 years remaining we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.
In 2010 we were phoned by Mr Ethan Roux who, having took over the lease of a studio flat in Perton in November 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical premises in Perton with 100 year plus lease were valued around £250,400. The average amount of ground rent was £65 collected per annum. The lease came to a finish on 16 March 2089. Taking into account 64 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 not including expenses.