For those whose Poulton Le Fylde flat is held on a long lease, the message is clear – if nothing is done, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold premises in Poulton Le Fylde with more than 100 years remaining 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service will provide you better control over the value of your Poulton Le Fylde leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful discussions with the freeholder of her basement apartment in Poulton Le Fylde, Isobel started the lease extension process as the 80 year threshold was rapidly approaching. The lease extension was finalised in November 2013. The landlord’s costs were kept to an absolute minimum.
Mrs I Nelson moved into a ground floor flat in Poulton Le Fylde in August 1998. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar homes in Poulton Le Fylde with 100 year plus lease were worth £205,000. The average ground rent payable was £50 invoiced annually. The lease came to a finish in 2104. Taking into account 79 years unexpired we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.
In 2014 we were e-mailed by Ms Katie Cooper who, having moved into a newly refurbished flat in Poulton Le Fylde in October 2008. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Comparable residencies in Poulton Le Fylde with an extended lease were in the region of £275,000. The average amount of ground rent was £65 invoiced per annum. The lease lapsed on 17 July 2093. Given that there were 68 years as a residual term we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.