Unfortunately that a Arkley residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Arkley property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to 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 The majority of leasehold owners in Arkley will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Arkley with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Arkley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Arkley valuers.
Last October Austin, came seriously close to the eighty-year mark with the lease on his purpose- built apartment in Arkley. In buying his property 18 years ago, the lease term was of no significance. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Austin arranged for a lease extension at the eleventh hour last September. Austin and the freeholder via the management company subsequently settled on a premium of £5,500 . If the lease had dropped to less than 80 years, the premium would have gone up by at least £850.
Dr M Fournier acquired a recently refurbished apartment in Arkley in September 2010. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Identical flats in Arkley with a long lease were worth £295,000. The mid-range amount of ground rent was £45 billed per annum. The lease concluded on 19 August 2100. Given that there were 74 years remaining we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
An example of a Lease Extension decision for a Arkley premises 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 related to 1 flat. The unexpired term was 71.73 years.