It’s a harsh certainty that a Arkley residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Arkley property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term drops below 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 Arkley will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold premises in Arkley with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Arkley leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Joshua, started to get close to the eighty-year mark with the lease on his basement apartment in Arkley. In buying his property 18 years previously, the length of the lease was of no interest. Thankfully, he recognised he would soon be paying way over the odds for a lease extension. Joshua extended the lease just under the wire in March. Joshua and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If he not met the deadline, the sum would have gone up by at least £1,150.
In 2009 we were approached by Mr and Mrs. D Edwards who, having moved into a purpose-built apartment in Arkley in May 2008. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical residencies in Arkley with 100 year plus lease were in the region of £208,600. The average ground rent payable was £60 collected yearly. The lease expired in 2083. Given that there were 57 years outstanding we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including legals.
An example of a Lease Extension decision 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 number of years remaining on the existing lease(s) was 71.73 years.