Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Umberleigh. Clearly, the term of lease left shortens as time goes by. This is often overlooked and only becomes a problem when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying leaseholders in Umberleigh have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give due consideration before delaying your Umberleigh lease extension. Holding off that expense now likely increases the price you will ultimately incur to extend your lease
Leasehold residencies in Umberleigh with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Umberleigh leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Joshua owned a high value flat in Umberleigh on the market with a lease of a few days over 72 years unexpired. Joshua on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to invoke his statutory right. Joshua obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2010 we were phoned by Dr R Davies who, having completed a ground floor apartment in Umberleigh in March 2010. The question was if we could approximate the price could be to extend the lease by a further 90 years. Similar properties in Umberleigh with 100 year plus lease were valued around £189,000. The average amount of ground rent was £55 billed quarterly. The lease expired in 2079. Given that there were 53 years left we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.
Last Winter we were approach by Mr and Mrs. B González , who owned a first floor apartment in Umberleigh in May 2001. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Identical flats in Umberleigh with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease ran out in 2099. Considering the 73 years as a residual term we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.