Turvey leases on residential properties are gradually losing value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease dips under eighty years - otherwise a higher amount will be due. Leasehold owners in Turvey will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and steps to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Turvey with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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. |
| Halifax | 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 |
Irrespective of whether you are a tenant or a freeholder in Turvey,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Turvey valuers.
In recent months Luke, started to get near to the eighty-year mark with the lease on his studio flat in Turvey. In buying his flat twenty years previously, the length of the lease was of little interest. As luck would have it, he became aware that he needed to take action soon on a lease extension. Luke arranged for a lease extension just under the wire last June. Luke and the freeholder in the end settled on the final figure of £5,000 . If the lease had descended lower than 80 years, the price would have escalated by at least £1,025.
Last Summer we were called by Dr A Mitchell , who moved into a studio flat in Turvey in February 2006. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Identical residencies in Turvey with a long lease were valued about £260,000. The mid-range amount of ground rent was £50 collected annually. The lease ended on 3 February 2098. Having 72 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
Last Winter we were called by Mr and Mrs. M Davis , who moved into a purpose-built flat in Turvey in September 1995. The question was if we could estimate the price would likely be for a ninety year lease extension. Similar properties in Turvey with an extended lease were valued around £256,600. The average ground rent payable was £60 invoiced monthly. The lease expired in 2078. Having 52 years left we estimated the premium to the freeholder to extend the lease to be within £41,800 and £48,400 not including expenses.