With a domestic leasehold property in Saxilby, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years left. Leasehold owners in Saxilby with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When a lease has less than 80 years left, under the current Act the landlord is entitled to calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Saxilby with more than 100 years remaining 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Saxilby leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted discussions with the landlord of her leasehold flat in Saxilby, Grace started the lease extension process as the eighty year threshold was quickly advancing. The legal work was finalised in October 2008. The freeholder’s charges were negotiated to below 700 GBP.
Last month we were contacted by Mr O Petit , who bought a purpose-built apartment in Saxilby in May 2005. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Comparable premises in Saxilby with a long lease were in the region of £245,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease concluded on 15 March 2094. Having 68 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
In 2011 we were phoned by Mr and Mrs. E Bailey who, having owned a ground floor apartment in Saxilby in July 2005. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Saxilby with 100 year plus lease were worth £285,000. The average ground rent payable was £55 billed quarterly. The lease ended in 2105. Given that there were 79 years outstanding we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus legals.