Leven 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. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Leven will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain cases you may not be entitled. There are prescribed timetables and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Leven with over 100 years unexpired 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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 obtain guidance 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 in-depth market knowledge procuring Leven lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Connor owned a conversion apartment in Leven on the market with a lease of just over 72 years remaining. Connor on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be payable on a lease extension were Connor to exercise his statutory right. Connor procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2013 we were phoned by Mr Lewis Díaz who, having took over the lease of a recently refurbished flat in Leven in January 2008. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Identical residencies in Leven with 100 year plus lease were worth £275,000. The average ground rent payable was £55 collected monthly. The lease came to a finish in 2103. Considering the 77 years outstanding we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.
In 2009 we were e-mailed by Dr A Vincent who, having bought a purpose-built flat in Leven in February 1999. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Comparative residencies in Leven with a long lease were worth £183,600. The average ground rent payable was £65 invoiced every twelve months. The lease ended on 3 January 2083. Considering the 57 years left we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of costs.