The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Trowbridge may extend the lease for an additional 90 years in accordance with legislation. Do think carefully before delaying your Trowbridge lease extension. Putting off the costs today simply escalates the premium you will eventually be required to pay to extend the lease.
Leasehold properties in Trowbridge with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘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 purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 Trowbridge can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 Trowbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy negotiations with the landlord of her purpose-built flat in Trowbridge, Melissa started the lease extension process just as the lease was coming close to the all-important 80-year mark. The legal work was concluded in June 2009. The landlord’s fees were negotiated to approximately 500 GBP.
In 2010 we were phoned by Mr T Cooper who, having moved into a newly refurbished apartment in Trowbridge in July 1997. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Trowbridge with an extended lease were in the region of £201,200. The average amount of ground rent was £55 billed every twelve months. The lease terminated on 16 October 2082. Taking into account 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including expenses.
Last year we were called by Mr and Mrs. E Martinez , who purchased a one bedroom flat in Trowbridge in July 2008. The question was if we could approximate the premium could be for a 90 year extension to my lease. Similar premises in Trowbridge with a long lease were in the region of £300,000. The average amount of ground rent was £50 collected yearly. The lease finished on 3 March 2102. Considering the 76 years left we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.