With a residential leasehold property in Addlestone, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about 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 especially once there are less than eighty years left. Leasehold owners in Addlestone with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has less than 80 years outstanding, under the current statute the landlord is entitled to calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Yorkshire 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. |
Lease extensions in Addlestone can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor 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 in-depth market knowledge procuring Addlestone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
John was the the leasehold owner of a 2 bedroom apartment in Addlestone on the market with a lease of just over 59 years remaining. John informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were John to exercise his statutory right. John procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. F Rivera was assigned a lease of a one bedroom apartment in Addlestone in March 2010. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparative premises in Addlestone with a long lease were valued about £240,600. The average ground rent payable was £60 invoiced every twelve months. The lease lapsed on 5 March 2088. Taking into account 62 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus expenses.
An example of a Lease Extension matter before the tribunal for a Addlestone premises is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case related to 1 flat. The unexpired term as at the valuation date was 82.93 years.