Ardleigh Green leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Ardleigh Green tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Ardleigh Green you must see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Ardleigh Green leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Ardleigh Green leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Luke, started to get close to the 80-year threshold with the lease on his basement apartment in Ardleigh Green. In buying his property two decades ago, the length of the lease was of minimal significance. As luck would have it, he recognised he needed to take action soon on a lease extension. Luke extended the lease just in the nick of time in January. Luke and the landlord subsequently agreed on a premium of £5,500 . If he not met the deadline, the sum would have become more costly by a minimum £975.
In 2013 we were e-mailed by Mr Jasper Wilson who, having completed a first floor apartment in Ardleigh Green in January 2009. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable homes in Ardleigh Green with a long lease were worth £225,400. The average amount of ground rent was £45 collected annually. The lease finished on 11 May 2089. Given that there were 64 years unexpired we approximated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 plus expenses.
An example of a Lease Extension matter before the tribunal for a Ardleigh Green flat 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 related to 1 flat. The unexpired lease term was 57.5 years.