Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Reddish. Inevitably, the length of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the property needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Reddish have the legal entitlement to extend the lease for an additional 90 years under legislation. Do give due attention before delaying your Reddish lease extension. Holding off that expense now simply increases the price you will ultimately have to pay to extend your lease
Leasehold properties in Reddish with in excess of 100 years left 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 to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
Lease extensions in Reddish can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 a wealth of experience procuring Reddish lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Edward, started to get near to the eighty-year threshold with the lease on his leasehold flat in Reddish. Having purchased his flat 19 years ago, the unexpired term was of little interest. Thankfully, he recognised he would imminently be paying way over the odds for Extending the lease. Edward was able to extend his lease just in the nick of time last April. Edward and the freeholder via the management company in the end settled on an amount of £5,500 . If the lease had slipped below 80 years, the price would have become more costly by a minimum £850.
Ms Freya Brown took over the lease of a purpose-built flat in Reddish in June 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Reddish with 100 year plus lease were valued around £260,000. The average ground rent payable was £50 collected yearly. The lease lapsed in 2097. Considering the 72 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
In 2011 we were contacted by Mrs Georgina Cox who, having purchased a first floor apartment in Reddish in November 2000. The question was if we could approximate the price would be for a 90 year lease extension. Identical residencies in Reddish with 100 year plus lease were in the region of £261,600. The average ground rent payable was £60 billed every twelve months. The lease end date was in 2077. Having 52 years unexpired we approximated the premium to the landlord to extend the lease to be between £39,000 and £45,000 not including professional charges.