Ingatestone leases on residential properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Ingatestone will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In some circumstances you may not qualify. There are also strict timetables and steps to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | 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. |
Lease extensions in Ingatestone can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Ingatestone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Luke, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Ingatestone. In buying his home 19 years previously, the length of the lease was of minimal relevance. Fortunately, it dawned on him that he would soon be paying way over the odds for Extending the lease. Luke extended the lease just ahead of time last March. Luke and the landlord eventually settled on a premium of £5,500 . If the lease had dipped below eighty years, the premium would have gone up by at least £950.
Ms Holly Lee acquired a purpose-built apartment in Ingatestone in September 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparative properties in Ingatestone with a long lease were in the region of £166,400. The mid-range ground rent payable was £60 collected every twelve months. The lease ended in 2078. Given that there were 54 years left we calculated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 plus expenses.
Last year we were phoned by Mr N Mason , who was assigned a lease of a purpose-built flat in Ingatestone in July 2011. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical residencies in Ingatestone with 100 year plus lease were worth £227,800. The mid-range amount of ground rent was £45 billed per annum. The lease finished on 11 July 2089. Taking into account 65 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.