Unfortunately that a Montpelier residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Montpelier property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be payable. Most leasehold owners in Montpelier will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Montpelier can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 a wealth of experience dealing with Montpelier lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of unsuccessful negotiations with the freeholder of her one bedroom apartment in Montpelier, Lucy commenced the lease extension process as the 80 year mark was quickly coming. The legal work was concluded in July 2013. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. D Jones acquired a one bedroom flat in Montpelier in April 2007. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Comparable homes in Montpelier with an extended lease were in the region of £216,000. The average ground rent payable was £60 billed annually. The lease elapsed in 2083. Considering the 58 years outstanding we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of costs.
Last April we were e-mailed by Dr C Bertrand , who acquired a one bedroom flat in Montpelier in August 2011. The question was if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Identical premises in Montpelier with an extended lease were worth £205,000. The mid-range ground rent payable was £50 billed monthly. The lease finished in 2103. Taking into account 78 years left we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.