With a long leasehold property in West Bridgford, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years remaining. Residents in West Bridgford with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has under eighty years outstanding, under the current legislation the landlord can calculate and levy a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in West Bridgford with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in West Bridgford can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in this area.
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 a wealth of experience dealing with West Bridgford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Arthur, started to get close to the eighty-year mark with the lease on his two bedroom flat in West Bridgford. In buying his property two decades ago, the unexpired term was of no importance. Luckily, he noticed he would imminently be paying an inflated amount for a lease extension. Arthur was able to extend his lease just ahead of time last July. Arthur and the freeholder via the management company in the end settled on sum of £5,500 . If he not met the deadline, the price would have increased by a minimum £1,100.
In 2011 we were phoned by Mr and Mrs. O Flores who, having bought a first floor apartment in West Bridgford in November 2006. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative premises in West Bridgford with a long lease were valued around £264,000. The average amount of ground rent was £60 collected quarterly. The lease ran out on 16 October 2078. Considering the 53 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 not including fees.
Dr I Clark completed a basement flat in West Bridgford in June 2004. 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. Similar premises in West Bridgford with an extended lease were in the region of £225,400. The average ground rent payable was £45 collected quarterly. The lease lapsed in 2089. Given that there were 64 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 not including costs.