The nearer a domestic lease in Earley gets to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond 99 years to run then this decrease may be negligible however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending without delay. Most flat owners in Earley will meet the qualifying criteria; nevertheless a lawyer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 conveyancing solicitors that we work with undertake Earley 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.
Michael was the the leasehold proprietor of a conversion apartment in Earley being sold with a lease of fraction over 61 years left. Michael on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Michael to invoke his statutory right. Michael obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Christmas we were e-mailed by Mr and Mrs. K Taylor , who was assigned a lease of a newly refurbished apartment in Earley in April 2001. The question was if we could approximate the premium could be to extend the lease by ninety years. Comparable flats in Earley with an extended lease were worth £191,400. The average ground rent payable was £55 billed per annum. The lease end date was in 2079. Having 54 years as a residual term we calculated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including expenses.
Last October we were called by Mr and Mrs. J Edwards , who bought a garden apartment in Earley in April 2000. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparable homes in Earley with a long lease were worth £295,000. The mid-range amount of ground rent was £45 billed quarterly. The lease expired on 14 September 2099. Considering the 74 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.