With a residential leasehold premises in Prudhoe, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years left. Anyone in Prudhoe with a lease drawing near to 81 years unexpired should seriously consider extending it sooner as opposed to later. Once the lease term has fewer than 80 years left, under the current statute the freeholder is entitled to calculate and demand a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Prudhoe with in excess of one hundred years outstanding 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 circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| 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. |
| 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. |
Lease extensions in Prudhoe can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Prudhoe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months James, started to get near to the eighty-year threshold with the lease on his garden apartment in Prudhoe. In buying his home twenty years ago, the unexpired term was of little significance. Fortunately, he noticed he would imminently be paying way over the odds for a lease extension. James arranged for a lease extension at the eleventh hour in April. James and the freeholder in the end agreed on sum of £5,500 . If the lease had descended below 80 years, the price would have escalated by at least £1,150.
Dr Lydia Rodríguez acquired a one bedroom apartment in Prudhoe in May 2001. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparable properties in Prudhoe with a long lease were in the region of £227,800. The average ground rent payable was £45 billed per annum. The lease ran out in 2090. Given that there were 65 years unexpired we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.
Mr R Kelly was assigned a lease of a first floor apartment in Prudhoe in August 2004. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable homes in Prudhoe with an extended lease were worth £275,000. The average ground rent payable was £55 collected every twelve months. The lease lapsed on 10 April 2101. Having 76 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.