As the the remaining lease term of a Repton residential lease decreases so does its value and therefore the value of your property. If the lease has, in excess of 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner rather than later. The majority of flat owners in Repton will meet the qualifying criteria; however a conveyancer should be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Repton with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
Using our service will provide you enhanced control over the value of your Repton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Isaac, came very close to the 80-year mark with the lease on his studio apartment in Repton. Having bought his home 18 years previously, the lease term was of minimal relevance. by good luck, he recognised he would soon be paying way over the odds for Extending the lease. Isaac extended the lease just in the nick of time in April. Isaac and the freeholder subsequently settled on an amount of £5,000 . If the lease had fallen lower than eighty years, the sum would have gone up by a minimum £875.
In 2012 we were called by Dr Leo Lee who, having moved into a one bedroom apartment in Repton in April 1995. The dilemma was if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar flats in Repton with a long lease were in the region of £250,000. The average amount of ground rent was £50 billed yearly. The lease elapsed in 2094. Having 69 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
In 2014 we were approached by Mr and Mrs. N David who, having bought a first floor apartment in Repton in February 2010. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Identical properties in Repton with an extended lease were in the region of £290,000. The average ground rent payable was £55 billed per annum. The lease end date was on 22 October 2105. Given that there were 80 years outstanding we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.