When it comes to long leasehold premises in Addlestone, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than eighty years remaining. Anyone in Addlestone with a lease nearing 81 years left should seriously consider extending it without delay. When the lease term has less than eighty years remaining, under the current legislation the landlord is entitled to calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Addlestone can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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 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.
Liam owned a high value flat in Addlestone being marketed with a lease of just over 72 years left. Liam informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Liam to invoke his statutory right. Liam obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2010 we were called by Dr M Taylor who, having took over the lease of a studio apartment in Addlestone in October 2011. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparative homes in Addlestone with an extended lease were in the region of £225,800. The average amount of ground rent was £60 billed per annum. The lease ran out in 2086. Given that there were 60 years left we approximated the compensation to the landlord for the lease extension to be within £24,700 and £28,600 plus fees.
An example of a Lease Extension decision 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 was in relation to 1 flat. The unexpired term as at the valuation date was 82.93 years.