When it comes to domestic leasehold premises in Timperley, you are actually buying an entitlement to reside in a property for a set period 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 rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Residents in Timperley with a lease nearing 81 years left should seriously consider extending it sooner rather than later. When a lease has less than eighty years remaining, under the current legislation the landlord is entitled to calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Timperley with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Timperley 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.
Aarav was the the leasehold proprietor of a 2 bedroom apartment in Timperley on the market with a lease of fraction over 72 years unexpired. Aarav informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Aarav to invoke his statutory right. Aarav obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
Last month we were approach by Mrs Catherine Green , who completed a first floor apartment in Timperley in October 1999. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical properties in Timperley with 100 year plus lease were worth £200,000. The average ground rent payable was £50 invoiced every twelve months. The lease ended in 2103. Having 77 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.
Dr Eleanor Lefebvre purchased a one bedroom flat in Timperley in June 2001. We are asked if we could approximate the price would be to extend the lease by ninety years. Identical residencies in Timperley with an extended lease were worth £260,200. The mid-range amount of ground rent was £65 collected quarterly. The lease lapsed on 17 June 2092. Given that there were 66 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 not including expenses.