Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Syston. Inevitably, the period of lease left shortens over time. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Syston have the right to extend the lease for an additional ninety years under statute. You should give careful consideration before putting off your Syston lease extension. Holding off the cost now only increases the price you will eventually incur for a lease extension
Leasehold premises in Syston with over 100 years remaining 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you better control over the value of your Syston leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Mason owned a studio apartment in Syston being sold with a lease of a few days over sixty years remaining. Mason informally approached his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Mason to invoke his statutory right. Mason procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.
Mr and Mrs. D Edwards was assigned a lease of a one bedroom flat in Syston in January 1999. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Similar properties in Syston with 100 year plus lease were in the region of £174,200. The average ground rent payable was £55 invoiced monthly. The lease ran out on 12 October 2077. Taking into account 51 years remaining we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus fees.
In 2012 we were phoned by Mr and Mrs. F Bonnet who, having owned a garden flat in Syston in July 2001. We are asked if we could approximate the premium would be to extend the lease by an additional years. Identical premises in Syston with a long lease were valued around £285,000. The mid-range amount of ground rent was £45 collected monthly. The lease expired on 10 September 2097. Given that there were 71 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.