As the length of the unexpired term of a Rowen domestic lease lessens so does its value and therefore the value of your property. Where the lease has, more than 100 years remaining then this decrease may be negligible however there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Rowen will qualify for this right; however a conveyancing solicitor will be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancing solicitors that we work with handle Rowen 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.
During the course of the last few months Blake, started to get near to the 80-year threshold with the lease on his garden flat in Rowen. Having purchased his flat two decades ago, the unexpired term was of little interest. Luckily, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Blake arranged for a lease extension just under the wire last September. Blake and the freeholder in the end settled on a premium of £5,500 . If the lease had fallen to less than 80 years, the amount would have become more exhorbitant by a minimum £1,025.
Last month we were phoned by Mr and Mrs. D Vincent , who acquired a one bedroom flat in Rowen in May 2000. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Identical flats in Rowen with 100 year plus lease were valued about £171,800. The average amount of ground rent was £55 collected yearly. The lease terminated in 2075. Considering the 50 years unexpired we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus fees.
Ms D Garcia acquired a one bedroom apartment in Rowen in July 1996. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative properties in Rowen with a long lease were valued about £280,000. The average ground rent payable was £45 invoiced annually. The lease came to a finish on 24 March 2095. Having 70 years left we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.