Ardleigh Green leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Ardleigh Green residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Ardleigh Green you really ought to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Ardleigh Green with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
Lender | Requirement |
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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. |
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 | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
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. |
The lawyers that we work with undertake Ardleigh Green lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last October Nathaniel, started to get near to the 80-year threshold with the lease on his ground floor flat in Ardleigh Green. In buying his flat two decades ago, the lease term was of no significance. by good luck, he realised he needed to take steps soon on Extending the lease. Nathaniel arranged for a lease extension just in the nick of time in April. Nathaniel and the freeholder via the management company ultimately settled on a premium of £6,000 . If the lease had descended to less than eighty years, the amount would have gone up by at least £925.
Mr and Mrs. H González moved into a studio apartment in Ardleigh Green in March 1999. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparative properties in Ardleigh Green with an extended lease were valued about £168,800. The mid-range ground rent payable was £60 invoiced annually. The lease expired in 2080. Considering the 55 years outstanding we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including expenses.
An example of a Lease Extension decision for a Ardleigh Green residence is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case was in relation to 1 flat. The remaining number of years on the lease was 57.5 years.