When it comes to residential leasehold property in Worsley, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Leasehold owners in Worsley with a lease nearing 81 years left should seriously consider extending it sooner as opposed to later. When the lease term has less than eighty years remaining, under the relevant Act the freeholder is entitled to calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Worsley with more than one hundred years outstanding on the lease are often regarded as a ‘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 |
|---|---|
| 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. |
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Worsley 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.
Two years ago Toby, came precariously near to the 80-year mark with the lease on his one bedroom apartment in Worsley. Having purchased his flat twenty years previously, the length of the lease was of minimal importance. by good luck, he realised he needed to take steps soon on a lease extension. Toby arranged for a lease extension just in the nick of time in January. Toby and the freeholder subsequently agreed on an amount of £5,500 . If he failed to meet the deadline, the price would have become more costly by at least £1,050.
Mr and Mrs. J Fournier bought a recently refurbished flat in Worsley in January 2003. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable flats in Worsley with an extended lease were worth £216,000. The mid-range ground rent payable was £60 collected every twelve months. The lease elapsed in 2083. Given that there were 58 years outstanding we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including professional charges.
Ms G Lewis acquired a recently refurbished apartment in Worsley in September 2000. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Identical residencies in Worsley with a long lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease termination date was in 2103. Considering the 78 years left we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.