The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Reddish can extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Please think carefully before delaying your Reddish lease extension. Putting off the costs today simply escalates the amount you will eventually be required to pay for a lease extension.
Leasehold residencies in Reddish with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Santander | |
| Yorkshire Building Society |
The lawyers that we work with handle Reddish lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to lengthy correspondence with the freeholder of her one bedroom apartment in Reddish, Lucy commenced the lease extension process just as the lease was approaching the crucial eighty-year mark. The legal work was concluded in July 2014. The landlord’s costs were kept to an absolute minimum.
Last month we were approach by Mr William Campbell , who was assigned a lease of a purpose-built flat in Reddish in May 2009. The question was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparative properties in Reddish with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 billed monthly. The lease expired in 2100. Given that there were 74 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
Last Winter we were called by Mr and Mrs. D Johnson , who acquired a basement flat in Reddish in April 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparative residencies in Reddish with an extended lease were in the region of £166,400. The average ground rent payable was £60 collected yearly. The lease concluded in 2080. Considering the 54 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of expenses.