With a domestic leasehold property in Temple Mills, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Leasehold owners in Temple Mills with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has fewer than eighty years outstanding, under the current Act the freeholder can calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in Temple Mills with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Lease extensions in Temple Mills can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.
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 dealing with Temple Mills lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Jude, came critically close to the eighty-year mark with the lease on his two bedroom apartment in Temple Mills. In buying his flat two decades ago, the unexpired term was of little relevance. Thankfully, he recognised he needed to take action soon on a lease extension. Jude was able to extend his lease just under the wire in July. Jude and the freeholder via the managing agents in the end agreed on the final figure of £5,000 . If he had missed the deadline, the figure would have escalated by a minimum £900.
Mr and Mrs. B Hill bought a first floor apartment in Temple Mills in June 1998. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparable properties in Temple Mills with 100 year plus lease were worth £264,000. The average ground rent payable was £60 invoiced annually. The lease expiry date was in 2078. Having 53 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 not including expenses.
Last Summer we were e-mailed by Mr and Mrs. W Hall , who completed a one bedroom flat in Temple Mills in May 1999. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparative premises in Temple Mills with 100 year plus lease were in the region of £225,400. The average amount of ground rent was £45 billed monthly. The lease terminated in 2089. Having 64 years outstanding we approximated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 not including fees.