The nearer a domestic lease in Beckermet gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than one hundred years to run then this decrease may be fractional however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. Many flat owners in Beckermet will qualify for this right; however a conveyancer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
Lender | Requirement |
---|---|
Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
Halifax | Minimum 70 years from the date of the mortgage. |
National Westminster Bank | Mortgage term plus 30 years. |
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 Beckermet 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 conveyancing solicitor we work with provide it.
Connor was the the leasehold owner of a conversion apartment in Beckermet on the market with a lease of a few days over fifty eight years unexpired. Connor informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Connor to exercise his statutory right. Connor procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. F Wright completed a ground floor flat in Beckermet in November 1997. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar flats in Beckermet with 100 year plus lease were valued around £181,600. The mid-range amount of ground rent was £55 collected yearly. The lease terminated in 2076. Given that there were 52 years left we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus professional charges.
Mr and Mrs. M Bennett acquired a basement apartment in Beckermet in April 1999. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Similar premises in Beckermet with an extended lease were worth £290,000. The average ground rent payable was £45 collected annually. The lease end date was on 2 March 2096. Taking into account 72 years outstanding we calculated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus legals.