Iver leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. Leasehold owners in Iver will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and steps to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Iver with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
The conveyancing solicitors that we work with undertake Iver 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 conveyancer we work with provide it.
Ibrahim was the the leasehold owner of a 2 bedroom apartment in Iver being sold with a lease of a few days over fifty eight years unexpired. Ibrahim informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2009 we were phoned by Dr Edward Roberts who, having purchased a purpose-built apartment in Iver in August 2007. The question was if we could approximate the price would likely be for a ninety year lease extension. Similar residencies in Iver with a long lease were worth £176,200. The mid-range ground rent payable was £65 collected quarterly. The lease terminated on 12 April 2081. Given that there were 56 years remaining we calculated the premium to the landlord for the lease extension to be between £29,500 and £34,000 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Iver residence is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case was in relation to 2 flats. The unexpired residue of the current lease was 69 years.