Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Robertsbridge. Inevitably, the term of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the residence has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Robertsbridge have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Do give due consideration before delaying your Robertsbridge lease extension. Holding off the cost now likely increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Robertsbridge with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 handle 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 conveyancer we work with provide it.
Two years ago Benjamin, came precariously close to the eighty-year mark with the lease on his purpose- built apartment in Robertsbridge. In buying his flat two decades ago, the lease term was of no significance. by good luck, he became aware that he needed to take steps soon on Extending the lease. Benjamin extended the lease at the eleventh hour in July. Benjamin and the landlord who owned the flat above subsequently settled on a premium of £5,500 . If the lease had slipped lower than eighty years, the price would have become more costly by at least £1,050.
Mrs Abigail Flores owned a studio flat in Robertsbridge in March 2003. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparable properties in Robertsbridge with 100 year plus lease were in the region of £168,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease expired in 2080. Having 55 years unexpired we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus fees.
Dr R Flores bought a garden flat in Robertsbridge in September 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Robertsbridge with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 invoiced monthly. The lease terminated on 2 September 2091. Given that there were 66 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.