With a long leasehold premises in Leven, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than eighty years remaining. Leasehold owners in Leven with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. Once the lease term has less than 80 years outstanding, under the relevant statute the landlord can calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Leven 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 conveyancing solicitor we work with provide it.
Off the back of protracted correspondence with the freeholder of her ground floor apartment in Leven, Laura initiated the lease extension process as the eighty year deadline was rapidly advancing. The legal work was finalised in June 2005. The landlord’s fees were restricted to slightly above 550 GBP.
Dr Theo Sánchez completed a garden apartment in Leven in February 2000. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Similar homes in Leven with an extended lease were worth £270,000. The average amount of ground rent was £55 collected annually. The lease expired on 3 February 2100. Considering the 75 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Mr and Mrs. F Wilson owned a basement flat in Leven in October 2007. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable flats in Leven with 100 year plus lease were valued around £168,800. The average amount of ground rent was £60 collected per annum. The lease end date was on 16 September 2080. Taking into account 55 years remaining we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus costs.