As the the remaining lease term of a Andover residential lease lessens so does its value and therefore the value of your property. If the lease has, beyond 125 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner than later. Many flat owners in Andover will meet the qualifying criteria; however a conveyancing solicitor can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Andover with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Andover,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Andover valuers.
Lucas was the the leasehold owner of a 2 bedroom flat in Andover on the market with a lease of a few days over 59 years unexpired. Lucas on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Lucas to invoke his statutory right. Lucas obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Mr and Mrs. O Lefebvre acquired a one bedroom flat in Andover in August 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Identical premises in Andover with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 invoiced quarterly. The lease expired in 2089. Having 63 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 not including legals.
In 2009 we were e-mailed by Ms L Martínez who, having owned a garden flat in Andover in November 1995. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparative properties in Andover with an extended lease were valued about £265,000. The average ground rent payable was £50 invoiced annually. The lease came to a finish in 2100. Given that there were 74 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.