When it comes to residential leasehold premises in Robertsbridge, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are less than eighty years remaining. Residents in Robertsbridge with a lease approaching 81 years remaining should seriously consider extending it without delay. Once a lease has fewer than eighty years remaining, under the current statute the landlord is entitled to calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Robertsbridge with more than 100 years left on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 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 lawyer we work with provide it.
Off the back of protracted negotiations with the landlord of her purpose-built flat in Robertsbridge, Danielle started the lease extension process as the eighty year threshold was rapidly nearing. The transaction was concluded in October 2011. The landlord’s charges were kept to an absolute minimum.
Last Spring we were called by Dr Jennifer Vincent , who acquired a recently refurbished flat in Robertsbridge in March 2005. We are asked if we could estimate the premium could be for a 90 year lease extension. Similar flats in Robertsbridge with a long lease were valued about £227,800. The mid-range amount of ground rent was £45 collected every twelve months. The lease elapsed in 2091. Given that there were 65 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.
In 2013 we were approached by Mr and Mrs. S Gray who, having was assigned a lease of a garden flat in Robertsbridge in October 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Similar residencies in Robertsbridge with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 billed per annum. The lease finished in 2102. Taking into account 76 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.