When it comes to residential leasehold premises in Quorn, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than eighty years remaining. Residents in Quorn with a lease approaching 81 years left should seriously think of extending it without delay. Once the lease term has under eighty years remaining, under the current legislation the landlord can calculate and demand a greater premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Quorn with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Quorn leasehold, as your property will be more valuable and saleable in terms of lease length should you decide 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.
Teddy owned a conversion flat in Quorn on the market with a lease of a few days over 61 years unexpired. Teddy on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Teddy to invoke his statutory right. Teddy obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last Winter we were contacted by Dr J Nelson , who took over the lease of a garden flat in Quorn in August 1995. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative properties in Quorn with 100 year plus lease were valued about £191,400. The mid-range ground rent payable was £55 invoiced every twelve months. The lease ended in 2080. Considering the 54 years left we calculated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of legals.
Last Spring we were called by Mr and Mrs. W Martinez , who purchased a one bedroom flat in Quorn in March 1998. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative properties in Quorn with an extended lease were worth £295,000. The average amount of ground rent was £45 invoiced quarterly. The lease ran out in 2100. Considering the 74 years left we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.