As the the remaining lease term of a Histon residential lease diminished so does its value and therefore the value of your property. Where the residual term has, in excess of 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less 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 reason why you should consider extending without delay. Many flat owners in Histon will qualify for this right; that being said a conveyancer can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Histon,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Histon valuers.
Subsequent to unsuccessful discussions with the landlord of her leasehold apartment in Histon, Caitlin initiated the lease extension process just as her lease was nearing the all-important eighty-year mark. The legal work completed in March 2013. The freeholder’s fees were restricted to a tad over four hundred GBP.
In 2011 we were e-mailed by Mr and Mrs. A Sharif who, having purchased a first floor apartment in Histon in March 1995. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Comparative homes in Histon with an extended lease were valued around £176,200. The mid-range amount of ground rent was £65 billed per annum. The lease lapsed on 28 June 2081. Given that there were 56 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 plus fees.
In 2011 we were phoned by Mrs Bethan Allen who, having purchased a ground floor flat in Histon in May 2010. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparative residencies in Histon with 100 year plus lease were worth £237,600. The mid-range amount of ground rent was £45 invoiced per annum. The lease finished on 19 April 2092. Having 67 years unexpired we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of professional charges.