With a domestic leasehold property in Temple Fortune, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than 80 years left. Leasehold owners in Temple Fortune with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has under eighty years left, under the relevant legislation the landlord is entitled to calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Temple Fortune with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Temple Fortune can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Temple Fortune lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Harry, started to get close to the 80-year threshold with the lease on his two bedroom flat in Temple Fortune. In buying his flat 18 years ago, the lease term was of minimal interest. Luckily, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Harry extended the lease just in the nick of time last May. Harry and the freeholder via the managing agents ultimately agreed on a premium of £5,000 . If the lease had slipped to less than 80 years, the amount would have increased by at least £975.
Last June we were e-mailed by Mr James Miller , who purchased a ground floor apartment in Temple Fortune in October 2004. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Temple Fortune with an extended lease were valued around £243,000. The mid-range ground rent payable was £65 invoiced monthly. The lease finished on 10 August 2089. Taking into account 63 years remaining we approximated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of costs.
An example of a Lease Extension case for a Temple Fortune premises is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case affected 1 flat. The remaining number of years on the lease was 76 years.