When it comes to long leasehold premises in Arkley, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are fewer than eighty years remaining. Residents in Arkley with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once the lease term has fewer than eighty years remaining, under the current Act the freeholder can calculate and demand a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Arkley 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.
Two years ago Teddy, started to get close to the 80-year mark with the lease on his garden apartment in Arkley. In buying his flat 19 years ago, the unexpired term was of minimal relevance. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Teddy arranged for a lease extension just in the nick of time in April. Teddy and the freeholder eventually settled on an amount of £5,000 . If the lease had slipped below eighty years, the figure would have escalated by a minimum £1,100.
Last Spring we were e-mailed by Dr Lucy André , who owned a first floor apartment in Arkley in August 2007. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Arkley with an extended lease were worth £275,000. The average amount of ground rent was £65 collected annually. The lease elapsed on 20 February 2093. Considering the 68 years remaining we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.
An example of a Lease Extension decision for a Arkley property is Ground Floor Maisonette 17 Milton Road in January 2014. The Tribunal determined the premium payable by the Applicant to the should be £13,299 This case related to 1 flat. The unexpired term as at the valuation date was 71.73 years.