When it comes to long leasehold premises in Red Lodge, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease 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 particularly when there are less than 80 years left. Leasehold owners in Red Lodge with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has below 80 years left, under the relevant statute the landlord is entitled to calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Red Lodge with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Red Lodge leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the landlord of her studio apartment in Red Lodge, Shannon started the lease extension process as the 80 year threshold was rapidly advancing. The legal work was finalised in January 2007. The freeholder’s costs were restricted to approximately 700 GBP.
Mrs O Petit bought a purpose-built apartment in Red Lodge in February 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Red Lodge with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 billed per annum. The lease concluded on 20 November 2102. Having 77 years outstanding we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.
Mr and Mrs. O Miller owned a recently refurbished flat in Red Lodge in October 2008. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable residencies in Red Lodge with 100 year plus lease were worth £260,200. The mid-range ground rent payable was £65 collected quarterly. The lease finished in 2091. Having 66 years unexpired we approximated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including costs.