Ardwick leases on residential deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual 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 Ardwick will usually qualify for a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are prescribed timetables and procedures to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Ardwick with more than one hundred 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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; |
| 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. |
The lawyers that we work with procure Ardwick 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 conveyancing solicitor we work with provide it.
Last October James, started to get close to the 80-year mark with the lease on his first floor apartment in Ardwick. Having bought his flat two decades ago, the length of the lease was of minimal bearing. by good luck, he became aware that he needed to take action soon on a lease extension. James extended the lease at the eleventh hour in April. James and the freeholder via the managing agents subsequently settled on a premium of £6,000 . If the lease had descended below 80 years, the amount would have increased by at least £900.
Last month we were approach by Mr Tyler Phillips , who completed a studio apartment in Ardwick in January 2009. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar flats in Ardwick with a long lease were valued around £183,600. The average ground rent payable was £65 billed quarterly. The lease terminated on 16 October 2082. Taking into account 57 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.
Dr Austin Carter owned a purpose-built apartment in Ardwick in January 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Ardwick with a long lease were valued about £245,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease came to a finish in 2093. Given that there were 68 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.