Appleby In Westmorland leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Appleby In Westmorland will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain cases you may not be entitled. There are also strict deadlines and formalities to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 Appleby In Westmorland can be a difficult process. We recommend you get guidance 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 Appleby In Westmorland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the landlord of her two bedroom apartment in Appleby In Westmorland, Kelsey started the lease extension process as the 80 year threshold was fast nearing. The lease extension completed in January 2015. The landlord’s costs were kept to an absolute minimum.
In 2012 we were phoned by Dr Alice Garcia who, having acquired a first floor apartment in Appleby In Westmorland in May 1995. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar residencies in Appleby In Westmorland with an extended lease were valued around £280,000. The mid-range amount of ground rent was £55 collected annually. The lease ended on 17 January 2104. Considering the 78 years remaining we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.
Last month we were phoned by Mrs L Roux , who acquired a ground floor apartment in Appleby In Westmorland in May 1998. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Appleby In Westmorland with a long lease were worth £186,000. The average amount of ground rent was £65 invoiced quarterly. The lease expired in 2084. Having 58 years remaining we estimated the compensation to the freeholder to extend the lease to be between £24,700 and £28,600 not including expenses.