It’s an underpublicised certainty that a Uttoxeter residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Uttoxeter property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Uttoxeter will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Uttoxeter with in excess of one hundred 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 property. In such situations there is often little upside in purchasing the reversionary interest 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Uttoxeter,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Uttoxeter valuers.
Hugo was the the leasehold owner of a 2 bedroom apartment in Uttoxeter being sold with a lease of just over 61 years unexpired. Hugo informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert legal guidance and secured an acceptable deal informally and sell the flat.
Ms Freya Lee moved into a first floor apartment in Uttoxeter in September 2000. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Identical homes in Uttoxeter with 100 year plus lease were valued about £256,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease concluded in 2077. Taking into account 52 years left we estimated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 plus costs.
Mr and Mrs. H Carter took over the lease of a purpose-built apartment in Uttoxeter in November 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Uttoxeter with an extended lease were worth £218,000. The average amount of ground rent was £45 collected every twelve months. The lease came to a finish in 2088. Considering the 63 years left we approximated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 plus legals.