When it comes to residential leasehold premises in Underwood, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Anyone in Underwood with a lease nearing 81 years remaining should seriously think of extending it sooner than later. Once the lease term has below 80 years remaining, under the current statute the freeholder can calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Underwood 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Lease extensions in Underwood can be a difficult process. We recommend you secure professional help 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 in-depth market knowledge dealing with Underwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aarav was the the leasehold owner of a conversion apartment in Underwood being marketed with a lease of just over sixty years unexpired. Aarav informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Aarav to exercise his statutory right. Aarav procured expert advice and secured satisfactory resolution informally and sell the property.
In 2013 we were approached by Mr and Mrs. O Phillips who, having moved into a garden apartment in Underwood in January 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Identical properties in Underwood with 100 year plus lease were in the region of £200,800. The average amount of ground rent was £65 collected yearly. The lease expiry date was in 2086. Taking into account 60 years remaining we approximated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 plus fees.
In 2011 we were called by Mr and Mrs. M Ward who, having took over the lease of a basement flat in Underwood in September 1995. The question was if we could approximate the price would likely be to prolong the lease by ninety years. Comparable premises in Underwood with a long lease were worth £255,000. The average amount of ground rent was £50 invoiced monthly. The lease finished in 2097. Taking into account 71 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.