Partington leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Partington will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In some circumstances you may not qualify. There are also strict timetables and steps to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Partington,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Partington valuers.
Last October Elijah, came very close to the 80-year mark with the lease on his garden apartment in Partington. In buying his home two decades ago, the unexpired term was of no interest. Luckily, he realised he needed to take action soon on Extending the lease. Elijah was able to extend his lease just ahead of time in June. Elijah and the landlord in the end settled on an amount of £6,000 . If he had missed the deadline, the sum would have escalated by a minimum £1,100.
Mr and Mrs. A Bell took over the lease of a garden apartment in Partington in September 1997. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Partington with an extended lease were valued about £280,000. The mid-range amount of ground rent was £55 billed monthly. The lease terminated on 3 July 2102. Taking into account 77 years left we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.
Mr and Mrs. A Young acquired a one bedroom apartment in Partington in March 2008. The question was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative flats in Partington with a long lease were worth £183,600. The mid-range amount of ground rent was £65 collected quarterly. The lease elapsed on 8 January 2082. Given that there were 57 years as a residual term we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including professional charges.