Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Taverham. Clearly, the length of lease left reduces over time. This is often ignored and only raises itself as an issue when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Taverham have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give due consideration before putting off your Taverham lease extension. Putting off the cost now likely increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
The conveyancing solicitors that we work with undertake Taverham 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.
James owned a studio flat in Taverham on the market with a lease of a few days over 59 years outstanding. James informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were James to invoke his statutory right. James procured expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Mr Evan Michel completed a one bedroom flat in Taverham in April 2008. The question was if we could approximate the price could be for a ninety year lease extension. Comparable residencies in Taverham with a long lease were valued around £210,600. The mid-range amount of ground rent was £45 invoiced quarterly. The lease concluded on 27 November 2087. Considering the 62 years unexpired we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including professional charges.
In 2014 we were contacted by Dr W Kelly who, having acquired a studio flat in Taverham in October 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Taverham with a long lease were valued around £265,000. The average amount of ground rent was £50 billed monthly. The lease came to a finish in 2098. Taking into account 73 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.