With a long leasehold premises in Totland, you are actually buying a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are fewer than eighty years left. Residents in Totland with a lease approaching 81 years remaining should seriously think of extending it sooner than later. Once a lease has below eighty years left, under the relevant statute the freeholder is entitled to calculate and charge a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Totland with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Totland 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.
After lengthy negotiations with the freeholder of her garden flat in Totland, Hannah commenced the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The legal work completed in June 2009. The landlord’s costs were kept to an absolute minimum.
Last January we were phoned by Mr and Mrs. U Davies , who acquired a garden apartment in Totland in August 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Totland with an extended lease were in the region of £280,000. The mid-range ground rent payable was £55 invoiced annually. The lease terminated in 2103. Given that there were 78 years remaining we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.
Last Summer we were called by Mr P Ramírez , who took over the lease of a purpose-built apartment in Totland in November 2010. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Comparable residencies in Totland with an extended lease were valued around £191,000. The mid-range amount of ground rent was £65 invoiced annually. The lease terminated in 2083. Having 58 years left we approximated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus expenses.