Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Selston. Inevitably, the period of lease remaining reduces as time goes by. This is often overlooked and only becomes a problem when the residence needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Selston have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please give careful consideration before putting off your Selston lease extension. Putting off that expense now only increases the price you will eventually incur to extend your lease
Leasehold premises in Selston with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Selston 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.
Charlie was the the leasehold proprietor of a 2 bedroom apartment in Selston being sold with a lease of just over fifty eight years left. Charlie on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Charlie to invoke his statutory right. Charlie obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Dr U Rose took over the lease of a garden flat in Selston in September 1998. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparable properties in Selston with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease came to a finish in 2096. Considering the 71 years outstanding we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.
Last April we were contacted by Mr B Norbert , who bought a garden flat in Selston in January 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Similar flats in Selston with 100 year plus lease were worth £225,800. The average ground rent payable was £60 billed quarterly. The lease lapsed on 8 February 2085. Having 60 years unexpired we approximated the premium to the landlord to extend the lease to be between £24,700 and £28,600 not including fees.