When it comes to long leasehold property in Undy, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years left. Leasehold owners in Undy with a lease approaching 81 years left should seriously think of extending it sooner than later. When a lease has below eighty years remaining, under the relevant statute the freeholder is entitled to calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Undy with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancers that we work with procure Undy 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 lawyer we work with provide it.
After unsuccessful correspondence with the freeholder of her basement apartment in Undy, Rosie initiated the lease extension process as the eighty year deadline was swiftly coming. The transaction was concluded in April 2008. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were called by Mr and Mrs. W Pérez who, having completed a garden apartment in Undy in February 2000. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Comparable premises in Undy with an extended lease were worth £193,400. The average ground rent payable was £65 collected quarterly. The lease elapsed in 2084. Having 59 years unexpired we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of legals.
Last August we were e-mailed by Mr and Mrs. Y Howard , who completed a newly refurbished apartment in Undy in March 1996. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Undy with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease termination date was on 16 July 2095. Given that there were 70 years left we approximated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 plus costs.