Saxilby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Saxilby enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Saxilby you must investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Saxilby leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is put in place without delay
Leasehold premises in Saxilby with over one hundred years left 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 home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with handle Saxilby 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.
Connor owned a conversion flat in Saxilby on the market with a lease of fraction over fifty eight years left. Connor informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Connor to invoke his statutory right. Connor obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2009 we were phoned by Dr Ellen Martínez who, having completed a first floor flat in Saxilby in August 1997. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical properties in Saxilby with an extended lease were in the region of £166,400. The average amount of ground rent was £60 billed quarterly. The lease lapsed in 2079. Given that there were 54 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including fees.
In 2009 we were called by Ms I Moore who, having completed a basement flat in Saxilby in August 1997. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Saxilby with an extended lease were valued about £227,800. The average ground rent payable was £45 collected annually. The lease finished in 2090. Having 65 years left we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.