Borrowash leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Borrowash residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Borrowash you really ought to see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Borrowash can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Borrowash lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
James owned a conversion apartment in Borrowash being marketed with a lease of a little over 59 years left. James informally contacted his freeholder a well known local-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 £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were James to invoke his statutory right. James procured expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Last Winter we were phoned by Dr P Smith , who completed a basement apartment in Borrowash in April 2012. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Similar homes in Borrowash with an extended lease were valued around £203,200. The mid-range amount of ground rent was £65 invoiced per annum. The lease lapsed in 2086. Given that there were 61 years remaining we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of legals.
In 2014 we were contacted by Mr and Mrs. F Taylor who, having took over the lease of a garden flat in Borrowash in September 2011. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable premises in Borrowash with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 invoiced yearly. The lease concluded on 24 April 2097. Taking into account 72 years unexpired we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.