With a residential leasehold premises in Sileby, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are fewer than eighty years remaining. Leasehold owners in Sileby with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once a lease has fewer than 80 years remaining, under the relevant legislation the landlord can calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Sileby with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Sileby 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 conveyancer we work with provide it.
After protracted correspondence with the landlord of her first floor flat in Sileby, Jordan commenced the lease extension process just as the lease was coming close to the all-important 80-year mark. The transaction completed in August 2009. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. U Robinson completed a ground floor apartment in Sileby in August 2012. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Similar premises in Sileby with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 collected quarterly. The lease expired on 5 July 2082. Taking into account 57 years remaining we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
Last Christmas we were called by Dr William Carter , who moved into a ground floor apartment in Sileby in October 2000. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative properties in Sileby with an extended lease were valued around £250,000. The average amount of ground rent was £50 billed annually. The lease came to a finish on 4 January 2093. Having 68 years left we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.