Unfortunately that a Ardleigh Green residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Ardleigh Green property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining drops below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Ardleigh Green will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Ardleigh Green 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.
Following protracted discussions with the freeholder of her garden apartment in Ardleigh Green, Abbie commenced the lease extension process as the eighty year mark was swiftly nearing. The lease extension was finalised in January 2014. The landlord’s charges were restricted to about 550 pounds.
In 2014 we were e-mailed by Mrs Rhiannon Ali who, having completed a purpose-built apartment in Ardleigh Green in August 1999. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative residencies in Ardleigh Green with a long lease were valued around £235,200. The average ground rent payable was £45 collected annually. The lease ended in 2091. Taking into account 66 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.
An example of a Lease Extension matter before the tribunal for a Ardleigh Green flat is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case was in relation to 1 flat. The unexpired term as at the valuation date was 57.5 years.