Leven leases on domestic properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Leven will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some cases you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold premises in Leven with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Leven can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 in-depth market knowledge dealing with Leven lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted negotiations with the freeholder of her garden apartment in Leven, Leah started the lease extension process as the eighty year mark was rapidly nearing. The transaction completed in May 2006. The landlord’s costs were restricted to about 450 GBP.
In 2009 we were phoned by Mr T Rodríguez who, having completed a one bedroom flat in Leven in March 1998. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical residencies in Leven with an extended lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease termination date was in 2091. Taking into account 66 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
In 2013 we were contacted by Ms B Johnson who, having acquired a purpose-built apartment in Leven in September 2008. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Comparative properties in Leven with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 collected annually. The lease finished on 25 November 2102. Given that there were 77 years remaining we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.