Earley leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the current lease falls under eighty years - otherwise a higher amount will be payable. Leasehold owners in Earley will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not qualify. There are prescribed timetables and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Earley with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
The conveyancing solicitors that we work with undertake Earley 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 lawyer we work with provide it.
In 2014 Seth, came perilously close to the eighty-year threshold with the lease on his garden apartment in Earley. In buying his flat two decades ago, the lease term was of no interest. Fortunately, he realised he needed to take action soon on a lease extension. Seth arranged for a lease extension just under the wire last June. Seth and the freeholder via the management company in the end settled on a premium of £5,000 . If the lease had slipped lower than eighty years, the amount would have become more exhorbitant by a minimum £975.
Last November we were e-mailed by Dr K Wood , who purchased a basement flat in Earley in June 2001. The question was if we could approximate the price could be for a ninety year lease extension. Comparable homes in Earley with an extended lease were valued about £210,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease concluded on 7 November 2104. Considering the 80 years left we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.
In 2012 we were e-mailed by Dr U López who, having moved into a studio apartment in Earley in March 2006. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparative homes in Earley with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 invoiced monthly. The lease ended in 2093. Having 69 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.