When it comes to long leasehold premises in Trimdon, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension 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 once there are fewer than 80 years remaining. Leasehold owners in Trimdon with a lease drawing near to 81 years left should seriously think of extending it without delay. When a lease has fewer than 80 years left, under the relevant Act the landlord is entitled to calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Chelsea Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Trimdon can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in lease extensions.
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 procuring Trimdon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kai owned a studio apartment in Trimdon on the market with a lease of just over 72 years unexpired. Kai informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Kai to exercise his statutory right. Kai procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mr E Fournier acquired a one bedroom flat in Trimdon in March 2006. The question was if we could approximate the price could be for a ninety year lease extension. Comparative residencies in Trimdon with 100 year plus lease were valued around £260,000. The average ground rent payable was £50 invoiced yearly. The lease finished on 1 January 2098. Having 72 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Last month we were contacted by Dr Nathan Baker , who moved into a recently refurbished apartment in Trimdon in March 2008. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Trimdon with an extended lease were worth £261,600. The mid-range amount of ground rent was £60 billed per annum. The lease ended on 26 March 2078. Having 52 years remaining we approximated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 plus fees.