When it comes to domestic leasehold premises in Rossington, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider 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 especially once there are fewer than eighty years left. Anyone in Rossington with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has less than eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and demand a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Rossington with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Rossington 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.
Trailing protracted negotiations with the freeholder of her one bedroom apartment in Rossington, Hollie commenced the lease extension process as the eighty year threshold was rapidly approaching. The lease extension was finalised in July 2013. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were called by Mr A Johnson who, having moved into a garden flat in Rossington in July 2010. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar residencies in Rossington with an extended lease were in the region of £166,400. The average ground rent payable was £60 billed quarterly. The lease expired in 2079. Taking into account 54 years remaining we calculated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus fees.
Mr L Allen acquired a one bedroom apartment in Rossington in March 2006. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative residencies in Rossington with an extended lease were in the region of £232,800. The mid-range ground rent payable was £45 collected per annum. The lease terminated on 17 May 2090. Given that there were 65 years remaining we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.