Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Turvey. Inevitably, the length of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the residence has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Eligible leaseholders in Turvey have the legal entitlement to extend the lease for a further ninety years in accordance with statute. Do give due deliberation before putting off your Turvey lease extension. Holding off the cost now likely increases the price you will ultimately incur for a lease extension
Leasehold premises in Turvey with in excess of one hundred years remaining 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 upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Turvey leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Connor owned a high value apartment in Turvey being sold with a lease of just over 72 years outstanding. Connor on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Connor to exercise his statutory right. Connor procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last Autumn we were e-mailed by Mr and Mrs. N Adams , who moved into a newly refurbished flat in Turvey in May 2010. The question was if we could estimate the price could be to extend the lease by 90 years. Comparative residencies in Turvey with an extended lease were worth £193,400. The mid-range ground rent payable was £65 collected every twelve months. The lease came to a finish in 2084. Having 59 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus costs.
Last year we were phoned by Dr C Alexander , who completed a recently refurbished apartment in Turvey in June 2011. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Identical residencies in Turvey with an extended lease were worth £255,000. The average amount of ground rent was £50 billed yearly. The lease elapsed on 26 March 2095. Considering the 70 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.