Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Tring. Inevitably, the period of lease remaining reduces over time. This may pass by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Tring have the right to extend the lease for a further 90 years in accordance with statute. You should give due deliberation before putting off your Tring lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension
Leasehold residencies in Tring with more than one hundred years left 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 freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with undertake Tring 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.
Eliot owned a high value apartment in Tring being marketed with a lease of just over 61 years left. Eliot on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Eliot to exercise his statutory right. Eliot obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last Christmas we were approach by Ms Lily Morel , who moved into a ground floor flat in Tring in February 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable flats in Tring with an extended lease were in the region of £230,800. The mid-range ground rent payable was £60 billed annually. The lease ran out on 19 January 2086. Considering the 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £24,700 and £28,600 not including expenses.
Ms Elizabeth Morgan bought a studio apartment in Tring in July 1999. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Comparative flats in Tring with a long lease were worth £210,000. The average amount of ground rent was £50 billed monthly. The lease expiry date was in 2106. Taking into account 80 years left we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.