It’s a harsh certainty that a Leven residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Leven property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Leven will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
Leasehold residencies in Leven with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Leven,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Leven valuers.
After unsuccessful discussions with the landlord of her basement flat in Leven, Abbie started the lease extension process as the 80 year deadline was rapidly approaching. The transaction completed in June 2014. The freeholder’s costs were restricted to slightly above four hundred pounds.
In 2011 we were phoned by Mr and Mrs. S White who, having purchased a first floor apartment in Leven in November 1999. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Leven with a long lease were valued around £183,600. The average ground rent payable was £65 invoiced quarterly. The lease lapsed on 18 May 2083. Having 57 years outstanding we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus fees.
In 2014 we were called by Mr and Mrs. R Leroy who, having took over the lease of a purpose-built apartment in Leven in June 2009. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar flats in Leven with 100 year plus lease were in the region of £245,000. The average ground rent payable was £45 collected annually. The lease elapsed in 2094. Having 68 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.