As the the remaining lease term of a Smithfield residential lease lessens so does its value and therefore the value of your property. Where the residual term has, over one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Smithfield will qualify for this right; however a conveyancing solicitor can confirm if you qualify to extend your lease. In limited 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 considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Smithfield,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Smithfield valuers.
18 months ago Joseph, came critically near to the eighty-year mark with the lease on his two bedroom flat in Smithfield. Having purchased his flat two decades ago, the unexpired term was of no importance. Thankfully, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Joseph was able to extend his lease just ahead of time in May. Joseph and the landlord who owned the flat above ultimately settled on an amount of £5,000 . If he failed to meet the deadline, the premium would have become more exhorbitant by at least £1,125.
Dr Nathaniel Alexander owned a ground floor flat in Smithfield in September 2008. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical residencies in Smithfield with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced yearly. The lease lapsed on 4 April 2095. Taking into account 71 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.
Last Summer we were e-mailed by Mr and Mrs. F Sharif , who acquired a basement flat in Smithfield in May 2011. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Smithfield with an extended lease were in the region of £225,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease expired on 19 May 2084. Taking into account 60 years unexpired we calculated the compensation to the landlord to extend the lease to be within £25,700 and £29,600 not including costs.