The closer a domestic lease in Ireleth and Askam nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than one hundred years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Ireleth and Askam will qualify for this right; that being said a conveyancing solicitor can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with handle Ireleth and Askam 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 lawyer we work with provide it.
Twenty four months ago Eliot, started to get near to the eighty-year mark with the lease on his one bedroom flat in Ireleth and Askam. In buying his property two decades ago, the unexpired term was of minimal significance. Luckily, he noticed he needed to take steps soon on Extending the lease. Eliot was able to extend his lease just in the nick of time last April. Eliot and the landlord eventually agreed on the final figure of £5,000 . If he not met the deadline, the sum would have gone up by a minimum £1,125.
In 2012 we were e-mailed by Dr Poppy Michel who, having moved into a recently refurbished apartment in Ireleth and Askam in August 2008. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable homes in Ireleth and Askam with 100 year plus lease were worth £176,200. The average ground rent payable was £65 collected annually. The lease end date was in 2081. Considering the 56 years remaining we approximated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 plus professional charges.
In 2014 we were e-mailed by Mr and Mrs. V Martin who, having purchased a first floor flat in Ireleth and Askam in October 2010. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative flats in Ireleth and Askam with an extended lease were in the region of £242,600. The average amount of ground rent was £45 invoiced quarterly. The lease terminated in 2092. Considering the 67 years left we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of legals.