With a residential leasehold premises in Surbiton, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Anyone in Surbiton with a lease nearing 81 years unexpired should seriously think of extending it without delay. When the lease term has less than eighty years remaining, under the current legislation the landlord can calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence 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. |
Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Surbiton leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Finn, started to get near to the 80-year threshold with the lease on his basement flat in Surbiton. In buying his property 19 years ago, the lease term was of little relevance. As luck would have it, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Finn was able to extend his lease at the eleventh hour in January. Finn and the freeholder in the end settled on a premium of £5,500 . If he had missed the deadline, the price would have gone up by a minimum £1,150.
Dr Anna Laurent completed a basement flat in Surbiton in May 2000. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Similar premises in Surbiton with a long lease were worth £210,000. The mid-range ground rent payable was £50 invoiced annually. The lease lapsed on 9 May 2104. Having 80 years remaining we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.
An example of a Lease Extension case for a Surbiton property is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case affected 1 flat.