When it comes to long leasehold premises in South Cave, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Anyone in South Cave with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. Once the lease term has below eighty years left, under the relevant statute the freeholder can calculate and levy a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in South Cave with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant 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. |
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in South Cave,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with South Cave valuers.
Last Spring Stanley, started to get close to the 80-year threshold with the lease on his purpose- built flat in South Cave. Having bought his home two decades ago, the unexpired term was of no importance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Stanley arranged for a lease extension just under the wire last September. Stanley and the freeholder ultimately agreed on the final figure of £5,000 . If he not met the deadline, the premium would have become more exhorbitant by a minimum £875.
In 2011 we were e-mailed by Mrs A Turner who, having purchased a purpose-built apartment in South Cave in October 1998. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Comparative flats in South Cave with a long lease were worth £183,600. The average ground rent payable was £65 invoiced monthly. The lease elapsed in 2082. Given that there were 57 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus expenses.
In 2010 we were e-mailed by Mr and Mrs. A Wilson who, having took over the lease of a studio flat in South Cave in July 2012. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Identical homes in South Cave with 100 year plus lease were worth £245,000. The mid-range ground rent payable was £50 billed monthly. The lease came to a finish in 2093. Having 68 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.