With a residential leasehold premises in Arkley, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are fewer than eighty years left. Residents in Arkley with a lease drawing near to 81 years left should seriously consider extending it sooner than later. Once a lease has under 80 years left, under the relevant legislation the landlord can calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Regardless of whether you are a tenant or a landlord in Arkley,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Arkley valuers.
During the course of the last few months Nathan, started to get close to the 80-year mark with the lease on his leasehold apartment in Arkley. In buying his home 18 years previously, the lease term was of no relevance. Fortunately, he recognised he would soon be paying an escalated premium for Extending the lease. Nathan was able to extend his lease just under the wire last May. Nathan and the landlord in the end settled on an amount of £5,000 . If he failed to meet the deadline, the price would have increased by at least £1,000.
In 2013 we were approached by Dr Leah Roberts who, having acquired a recently refurbished flat in Arkley in September 2002. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparable premises in Arkley with an extended lease were worth £208,600. The average ground rent payable was £60 collected monthly. The lease concluded on 22 September 2081. Considering the 57 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus professional charges.
An example of a Lease Extension case for a Arkley property is Ground Floor Maisonette 17 Milton Road in January 2014. The Tribunal determined the premium payable by the Applicant to the should be £13,299 This case was in relation to 1 flat. The unexpired lease term was 71.73 years.