For anyone whose Telford flat is held on a long lease, our message is clear – if you do nothing, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.
Leasehold residencies in Telford with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Telford 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 lawyer we work with provide it.
Following lengthy discussions with the landlord of her two bedroom flat in Telford, Rebecca started the lease extension process as the eighty year deadline was quickly advancing. The transaction completed in November 2015. The freeholder’s costs were negotiated to a tad over 650 pounds.
Mr Max Reed moved into a studio flat in Telford in October 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparable homes in Telford with a long lease were worth £300,000. The average amount of ground rent was £50 collected quarterly. The lease terminated on 13 October 2101. Taking into account 76 years unexpired we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
Last Spring we were contacted by Ms K Ward , who owned a ground floor flat in Telford in July 1999. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Similar premises in Telford with an extended lease were valued about £252,800. The average ground rent payable was £65 invoiced per annum. The lease concluded on 4 May 2090. Having 65 years left we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus legals.