When it comes to domestic leasehold premises in Peterston Super Ely, you are actually buying a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are less than 80 years left. Residents in Peterston Super Ely with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has under 80 years outstanding, under the current statute the freeholder is entitled to calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Peterston Super Ely with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Peterston Super Ely leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful correspondence with the freeholder of her two bedroom flat in Peterston Super Ely, Lily initiated the lease extension process just as her lease was nearing the critical 80-year deadline. The transaction completed in November 2014. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were approached by Mr and Mrs. M Parker who, having purchased a purpose-built apartment in Peterston Super Ely in February 2000. The dilemma was if we could estimate the price would be for a ninety year lease extension. Identical homes in Peterston Super Ely with a long lease were in the region of £280,000. The average amount of ground rent was £55 billed per annum. The lease expiry date was in 2104. Given that there were 79 years left we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.
Last Winter we were approach by Mr and Mrs. P Hernández , who acquired a ground floor apartment in Peterston Super Ely in June 2008. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical premises in Peterston Super Ely with an extended lease were worth £191,000. The average amount of ground rent was £65 billed annually. The lease elapsed in 2083. Having 58 years unexpired we estimated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 plus legals.