On the balance of probabilities where you own a flat in Totland you actually own a long leasehold interest over your property
Leasehold premises in Totland with over 100 years remaining on the lease are sometimes regarded as a ‘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 buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Yorkshire 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. |
Lease extensions in Totland can be a difficult process. We recommend you secure professional help from a conveyancer and valuer 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 in-depth market knowledge procuring Totland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Eli, started to get close to the eighty-year mark with the lease on his two bedroom flat in Totland. Having purchased his flat 18 years previously, the unexpired term was of minimal concern. Fortunately, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Eli extended the lease at the eleventh hour last May. Eli and the landlord subsequently agreed on sum of £5,000 . If the lease had descended lower than 80 years, the amount would have gone up by a minimum £925.
Last year we were called by Mr and Mrs. D Richardson , who purchased a purpose-built flat in Totland in February 1997. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Totland with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 collected monthly. The lease finished on 12 May 2095. Considering the 69 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
In 2014 we were phoned by Dr K Pérez who, having moved into a garden flat in Totland in March 2011. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Comparable residencies in Totland with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected quarterly. The lease termination date was on 19 June 2106. Taking into account 80 years outstanding we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.