With a residential leasehold premises in Temple, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Leasehold owners in Temple with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has less than eighty years left, under the current legislation the freeholder can calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Temple with over one hundred years remaining 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Temple,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Temple valuers.
Trailing lengthy negotiations with the landlord of her first floor flat in Temple, Rhiannon started the lease extension process just as the lease was nearing the all-important 80-year threshold. The lease extension completed in May 2013. The landlord’s fees were negotiated to under 550 pounds.
Mr Adam Campbell acquired a first floor flat in Temple in August 2008. The question was if we could approximate the price could be to extend the lease by a further 90 years. Comparable homes in Temple with an extended lease were worth £225,800. The average ground rent payable was £60 invoiced every twelve months. The lease came to a finish on 8 May 2086. Taking into account 60 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £25,700 and £29,600 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Temple residence is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case affected 1 flat. The unexpired lease term was 66.8 years.