Unfortunately that a Ardleigh Green residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Ardleigh Green property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Ardleigh Green will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold premises in Ardleigh Green with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 increased control over the value of your Ardleigh Green leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Gabriel, started to get near to the eighty-year threshold with the lease on his purpose- built apartment in Ardleigh Green. In buying his home two decades ago, the length of the lease was of no bearing. As luck would have it, he recognised he would imminently be paying way over the odds for a lease extension. Gabriel was able to extend his lease at the eleventh hour last August. Gabriel and the freeholder eventually agreed on the final figure of £6,000 . If he not met the deadline, the sum would have become more costly by at least £975.
Dr William Mitchell was assigned a lease of a purpose-built apartment in Ardleigh Green in October 2008. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Comparative residencies in Ardleigh Green with an extended lease were valued about £280,000. The mid-range amount of ground rent was £55 billed per annum. The lease elapsed on 11 August 2104. Given that there were 78 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.
An example of a Lease Extension case for a Ardleigh Green premises 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 unexpired residue of the current lease was 57.5 years.