With a long leasehold property in South Petherton, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years left. Residents in South Petherton with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has below eighty years left, under the current Act the freeholder can calculate and levy a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in South Petherton with over 100 years remaining 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in South Petherton can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring South Petherton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful negotiations with the landlord of her ground floor apartment in South Petherton, Bethan started the lease extension process just as the lease was nearing the crucial 80-year threshold. The transaction was concluded in October 2005. The freeholder’s costs were negotiated to slightly above four hundred GBP.
Last Christmas we were e-mailed by Mr and Mrs. S Díaz , who was assigned a lease of a basement flat in South Petherton in March 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparative homes in South Petherton with a long lease were worth £270,000. The average amount of ground rent was £55 collected monthly. The lease came to a finish on 22 March 2100. Having 75 years as a residual term we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
In 2014 we were phoned by Dr P Rose who, having moved into a studio flat in South Petherton in July 2012. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Similar residencies in South Petherton with an extended lease were valued about £173,800. The average amount of ground rent was £60 collected annually. The lease expired on 4 April 2080. Given that there were 55 years unexpired we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of expenses.