Adderbury leases on residential deteriorating in value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Adderbury will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Adderbury with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Adderbury,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Adderbury valuers.
Trailing protracted discussions with the landlord of her one bedroom apartment in Adderbury, Katie started the lease extension process as the 80 year deadline was rapidly approaching. The transaction was concluded in January 2009. The landlord’s costs were kept to an absolute minimum.
In 2014 we were e-mailed by Dr Y Turner who, having moved into a one bedroom apartment in Adderbury in February 1995. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparable residencies in Adderbury with a long lease were worth £264,000. The average ground rent payable was £60 invoiced quarterly. The lease termination date was in 2079. Taking into account 53 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 plus costs.
Last Spring we were called by Dr L Murphy , who was assigned a lease of a ground floor flat in Adderbury in November 2007. The question was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative flats in Adderbury with a long lease were worth £225,400. The mid-range ground rent payable was £45 collected per annum. The lease ran out in 2090. Given that there were 64 years left we calculated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of legals.