On the balance of probabilities where you own a flat in Water Orton you actually own a long leasehold interest over your property
Leasehold residencies in Water Orton with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Using our service will provide you increased control over the value of your Water Orton leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Tommy, came very close to the 80-year mark with the lease on his first floor flat in Water Orton. In buying his flat twenty years previously, the lease term was of little bearing. by good luck, he realised he needed to take steps soon on a lease extension. Tommy extended the lease just under the wire in July. Tommy and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If the lease had descended below eighty years, the figure would have increased by at least £1,100.
Mrs Jessica Morel took over the lease of a first floor apartment in Water Orton in October 2005. The question was if we could approximate the price would be for a ninety year lease extension. Comparative residencies in Water Orton with an extended lease were worth £198,800. The average ground rent payable was £55 collected per annum. The lease terminated in 2080. Having 55 years remaining we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including fees.
In 2011 we were called by Dr R Dupont who, having acquired a basement apartment in Water Orton in October 2002. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparable residencies in Water Orton with 100 year plus lease were valued around £295,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease expired in 2100. Taking into account 75 years left we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.