As the length of the unexpired term of a Arlesey domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, over 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Arlesey will qualify for this right; however a conveyancer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| 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. |
| Yorkshire 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. |
The conveyancers that we work with handle Arlesey 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 conveyancer we work with provide it.
Elijah was the the leasehold owner of a 2 bedroom flat in Arlesey on the market with a lease of fraction over 61 years left. Elijah informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Elijah to exercise his statutory right. Elijah procured expert advice and secured an acceptable deal informally and sell the property.
In 2013 we were phoned by Mr Harvey Cox who, having acquired a garden apartment in Arlesey in May 1997. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Identical residencies in Arlesey with an extended lease were in the region of £265,000. The average amount of ground rent was £50 billed every twelve months. The lease finished on 9 February 2099. Taking into account 74 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Last Spring we were called by Mr and Mrs. G Lewis , who acquired a basement apartment in Arlesey in May 2002. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical homes in Arlesey with an extended lease were valued around £166,400. The mid-range amount of ground rent was £60 billed quarterly. The lease expired in 2079. Considering the 54 years left we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus fees.