For those whose Polesworth home is held on a long lease, the message is clear – if nothing is done, your property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold premises in Polesworth with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | 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 conveyancing solicitors that we work with handle Polesworth 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 conveyancer we work with provide it.
Last October Michael, came very close to the 80-year mark with the lease on his first floor flat in Polesworth. Having bought his flat two decades ago, the lease term was of minimal importance. As luck would have it, he realised he needed to take action soon on Extending the lease. Michael was able to extend his lease just under the wire last March. Michael and the landlord in the end agreed on the final figure of £5,500 . If the lease had dropped lower than eighty years, the sum would have increased by a minimum £900.
Mr and Mrs. J Hernández purchased a basement apartment in Polesworth in November 2011. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar homes in Polesworth with 100 year plus lease were valued around £200,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease came to a finish on 5 July 2103. Having 77 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.
Mr and Mrs. L Flores bought a basement apartment in Polesworth in April 2011. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical residencies in Polesworth with 100 year plus lease were worth £260,200. The average ground rent payable was £65 invoiced every twelve months. The lease elapsed in 2092. Given that there were 66 years unexpired we estimated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 plus fees.