Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Sewardstonebury. Inevitably, the term of lease left shortens over time. This is often ignored and only becomes a problem when the property has to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Sewardstonebury have the right to extend the lease for a further 90 years under legislation. Do give careful consideration before putting off your Sewardstonebury lease extension. Holding off that expense now simply increases the price you will eventually incur to extend your lease
Leasehold properties in Sewardstonebury with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancers that we work with procure Sewardstonebury 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.
Following protracted correspondence with the landlord of her leasehold flat in Sewardstonebury, Isabella commenced the lease extension process as the eighty year threshold was fast coming. The lease extension was concluded in November 2014. The landlord’s fees were kept to an absolute minimum.
In 2014 we were contacted by Mr T Rogers who, having bought a one bedroom flat in Sewardstonebury in May 2007. The question was if we could approximate the premium could be for a ninety year lease extension. Similar flats in Sewardstonebury with 100 year plus lease were in the region of £225,400. The average amount of ground rent was £45 collected quarterly. The lease lapsed on 15 November 2090. Given that there were 64 years left we estimated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of expenses.
In 2012 we were phoned by Mrs T White who, having bought a first floor flat in Sewardstonebury in April 2007. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable premises in Sewardstonebury with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 collected yearly. The lease elapsed on 13 July 2101. Having 75 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.