When it comes to long leasehold property in Red Lodge, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years remaining. Leasehold owners in Red Lodge with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. When the lease term has fewer than eighty years outstanding, under the current statute the landlord can calculate and demand a greater premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Red Lodge 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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. |
| 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. |
Lease extensions in Red Lodge can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
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 procuring Red Lodge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of unsuccessful correspondence with the landlord of her first floor apartment in Red Lodge, Kirsty initiated the lease extension process as the 80 year threshold was quickly nearing. The transaction completed in May 2015. The freeholder’s charges were restricted to less than 450 GBP.
In 2010 we were called by Dr Oscar Walker who, having moved into a one bedroom apartment in Red Lodge in October 2003. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical premises in Red Lodge with an extended lease were in the region of £267,600. The average amount of ground rent was £65 collected yearly. The lease elapsed in 2093. Considering the 67 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of fees.
Dr B Ricardo acquired a first floor flat in Red Lodge in January 2005. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative flats in Red Lodge with 100 year plus lease were in the region of £206,200. The mid-range ground rent payable was £60 collected every twelve months. The lease finished in 2082. Given that there were 56 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus expenses.