When it comes to residential leasehold premises in Thornton Cleveleys, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than 80 years left. Residents in Thornton Cleveleys with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. When the lease term has under 80 years outstanding, under the current legislation the landlord can calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Thornton Cleveleys with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing 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. |
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
The conveyancers that we work with procure Thornton Cleveleys 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 conveyancer we work with provide it.
Subsequent to lengthy discussions with the freeholder of her ground floor apartment in Thornton Cleveleys, Kate initiated the lease extension process as the 80 year mark was swiftly advancing. The transaction was concluded in September 2014. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were e-mailed by Mr Toby Sharif who, having took over the lease of a recently refurbished apartment in Thornton Cleveleys in November 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Similar flats in Thornton Cleveleys with a long lease were worth £246,800. The average amount of ground rent was £60 collected every twelve months. The lease termination date was in 2076. Taking into account 50 years left we estimated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of costs.
Last Summer we were contacted by Dr L Pérez , who was assigned a lease of a ground floor apartment in Thornton Cleveleys in March 2009. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparative premises in Thornton Cleveleys with a long lease were valued about £208,200. The mid-range ground rent payable was £65 billed yearly. The lease lapsed on 15 October 2087. Having 61 years outstanding we estimated the premium to the landlord for the lease extension to be between £20,000 and £23,000 plus fees.