With a residential leasehold property in Robertsbridge, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Anyone in Robertsbridge 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 relevant Act the freeholder is entitled to calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Robertsbridge with in excess of 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Robertsbridge 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.
During the course of the last few months Jayden, came seriously near to the 80-year mark with the lease on his leasehold apartment in Robertsbridge. Having bought his home 19 years ago, the lease term was of no importance. As luck would have it, he noticed he would imminently be paying way over the odds for Extending the lease. Jayden extended the lease at the eleventh hour last July. Jayden and the landlord who owned the flat above in the end agreed on an amount of £5,000 . If he not met the deadline, the sum would have gone up by a minimum £1,075.
In 2012 we were approached by Mr B Bell who, having moved into a ground floor flat in Robertsbridge in April 1997. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparative residencies in Robertsbridge with 100 year plus lease were in the region of £254,200. The mid-range amount of ground rent was £60 collected every twelve months. The lease ran out on 2 June 2076. Having 51 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of fees.
Last November we were phoned by Dr W Anderson , who bought a newly refurbished flat in Robertsbridge in January 2006. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical properties in Robertsbridge with 100 year plus lease were worth £210,600. The average ground rent payable was £45 collected annually. The lease end date was in 2087. Taking into account 62 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of legals.