The closer a domestic lease in Ulverston gets to zero years unexpired, the more it reduces the value of the property. If the lease has, over one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years remaining 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 main logic behind why you should consider extending without delay. Most flat owners in Ulverston will qualify for this right; nevertheless a conveyancer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Ulverston leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Felix, started to get near to the 80-year mark with the lease on his studio flat in Ulverston. In buying his flat twenty years ago, the lease term was of little relevance. Thankfully, he recognised he would soon be paying an inflated amount for Extending the lease. Felix was able to extend his lease just under the wire last June. Felix and the freeholder ultimately settled on a premium of £5,000 . If the lease had slipped to less than eighty years, the premium would have gone up by at least £950.
In 2010 we were contacted by Mr and Mrs. J Sánchez who, having took over the lease of a first floor flat in Ulverston in February 2004. The dilemma was if we could estimate the price would likely be to prolong the lease by an additional years. Comparative premises in Ulverston with an extended lease were in the region of £275,000. The average amount of ground rent was £55 billed annually. The lease came to a finish in 2100. Given that there were 76 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
In 2011 we were called by Mr and Mrs. T Campbell who, having purchased a purpose-built apartment in Ulverston in March 1997. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparable properties in Ulverston with a long lease were valued about £176,200. The average amount of ground rent was £65 billed monthly. The lease expiry date was in 2080. Having 56 years remaining we estimated the premium to the landlord for the lease extension to be between £29,500 and £34,000 not including professional charges.