There is no doubt about it a leasehold flat or house in Ardleigh Green is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Ardleigh Green will qualify for this right; that being said a conveyancing solicitor can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Ardleigh Green,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ardleigh Green valuers.
Half a year ago Matthew, came dangerously close to the 80-year threshold with the lease on his studio apartment in Ardleigh Green. Having bought his home two decades ago, the length of the lease was of little concern. Luckily, he became aware that he needed to take steps soon on Extending the lease. Matthew was able to extend his lease just in the nick of time last September. Matthew and the freeholder via the management company subsequently agreed on an amount of £6,000 . If he not met the deadline, the premium would have escalated by a minimum £950.
Last Winter we were approach by Mr W Wilson , who moved into a garden flat in Ardleigh Green in June 2009. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Similar residencies in Ardleigh Green with a long lease were in the region of £285,000. The average amount of ground rent was £55 collected annually. The lease elapsed in 2104. Given that there were 79 years as a residual term we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including costs.
An example of a Lease Extension case for a Ardleigh Green property 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 affected 1 flat. The number of years remaining on the existing lease(s) was 57.5 years.