Albrighton leases on domestic deteriorating in value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the current lease dips below 80 years - otherwise a higher amount will be payable. Flat owners in Albrighton will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some situations you may not be entitled. There are also strict timetables and formalities to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| 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; |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Albrighton can be a difficult process. We recommend you procure professional help from a lawyer 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 dealing with Albrighton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Harry, started to get near to the 80-year mark with the lease on his ground floor apartment in Albrighton. Having purchased his home two decades ago, the length of the lease was of minimal bearing. by good luck, he realised he would imminently be paying an inflated amount for Extending the lease. Harry arranged for a lease extension just under the wire in April. Harry and the landlord who owned the flat above subsequently agreed on the final figure of £5,000 . If he failed to meet the deadline, the premium would have escalated by at least £1,075.
Last Spring we were called by Mr A David , who bought a garden apartment in Albrighton in November 2000. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable residencies in Albrighton with 100 year plus lease were in the region of £191,400. The average amount of ground rent was £55 invoiced annually. The lease termination date was in 2080. Taking into account 54 years outstanding we estimated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 exclusive of costs.
Last Christmas we were called by Mr and Mrs. A Peterson , who purchased a ground floor flat in Albrighton in February 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Similar homes in Albrighton with a long lease were in the region of £295,000. The mid-range ground rent payable was £45 billed annually. The lease came to a finish in 2100. Given that there were 74 years unexpired we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.