For those whose Worksop home is held on a long lease, the message is clear – if no remedial action is taken, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold residencies in Worksop with over 100 years left 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with undertake Worksop 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 conveyancing solicitor we work with provide it.
In 2014 Kai, started to get near to the eighty-year mark with the lease on his basement apartment in Worksop. Having purchased his property twenty years previously, the lease term was of no importance. Luckily, he noticed he would imminently be paying an inflated amount for a lease extension. Kai was able to extend his lease at the eleventh hour in June. Kai and the landlord who owned the flat above subsequently agreed on the final figure of £5,000 . If he had missed the deadline, the price would have increased by a minimum £925.
Last Autumn we were contacted by Mr and Mrs. W Rose , who was assigned a lease of a ground floor apartment in Worksop in March 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparable flats in Worksop with a long lease were in the region of £208,200. The average ground rent payable was £65 invoiced annually. The lease ran out on 15 February 2087. Considering the 61 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus legals.
Dr B Bertrand moved into a garden flat in Worksop in November 2005. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparative homes in Worksop with a long lease were worth £260,000. The average ground rent payable was £50 invoiced every twelve months. The lease expired in 2098. Given that there were 72 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.