It’s a harsh truth that a Adwick le Street residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Adwick le Street property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term falls below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Adwick le Street will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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:
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Lease extensions in Adwick le Street can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
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 Adwick le Street lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted correspondence with the freeholder of her two bedroom flat in Adwick le Street, Gemma commenced the lease extension process just as her lease was nearing the critical eighty-year mark. The lease extension was concluded in May 2010. The landlord’s charges were restricted to less than 500 GBP.
Last November we were phoned by Dr Isaac Smith , who was assigned a lease of a basement apartment in Adwick le Street in October 1997. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Similar properties in Adwick le Street with 100 year plus lease were valued around £225,800. The mid-range ground rent payable was £60 billed yearly. The lease expiry date was in 2086. Having 60 years remaining we estimated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 plus costs.
Last Summer we were phoned by Mr and Mrs. R Lewis , who moved into a newly refurbished apartment in Adwick le Street in March 1998. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar flats in Adwick le Street with a long lease were in the region of £210,000. The average ground rent payable was £50 invoiced every twelve months. The lease ended in 2106. Having 80 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.