Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Ulverston. Inevitably, the term of lease left reduces over time. This is often overlooked and only becomes a problem when the residence needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Ulverston have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Please give careful consideration before delaying your Ulverston lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend your lease
Leasehold premises in Ulverston with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Ulverston can be a difficult process. We recommend you get guidance from a lawyer and valuer 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 a wealth of experience dealing with Ulverston 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 Jamie, started to get close to the eighty-year threshold with the lease on his first floor flat in Ulverston. Having purchased his flat two decades ago, the unexpired term was of minimal concern. Luckily, it dawned on him that he would imminently be paying way over the odds for a lease extension. Jamie was able to extend his lease at the eleventh hour in August. Jamie and the freeholder via the managing agents ultimately agreed on the final figure of £5,500 . If the lease had dipped to less than eighty years, the premium would have escalated by a minimum £1,025.
Last Summer we were called by Mrs Ellen Johnson , who purchased a basement flat in Ulverston in September 2007. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparative flats in Ulverston with 100 year plus lease were worth £246,800. The mid-range ground rent payable was £60 invoiced annually. The lease ended in 2076. Considering the 50 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 plus legals.
Last Summer we were approach by Mr Connor Miller , who moved into a one bedroom flat in Ulverston in May 2009. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Ulverston with an extended lease were valued about £208,200. The mid-range ground rent payable was £65 collected monthly. The lease ended on 21 February 2087. Having 61 years as a residual term we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 not including costs.