Arkley leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Arkley will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process has started so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service will provide you better control over the value of your Arkley leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Milo, came critically close to the 80-year threshold with the lease on his first floor apartment in Arkley. In buying his property 18 years previously, the length of the lease was of no significance. Thankfully, he realised he needed to take steps soon on a lease extension. Milo arranged for a lease extension just under the wire last January. Milo and the freeholder subsequently agreed on the final figure of £5,500 . If the lease had dipped below eighty years, the sum would have gone up by a minimum £1,025.
In 2014 we were phoned by Dr B Rodríguez who, having completed a one bedroom apartment in Arkley in November 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Arkley with 100 year plus lease were valued about £260,200. The mid-range ground rent payable was £65 collected monthly. The lease terminated in 2091. Given that there were 66 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including expenses.
An example of a Lease Extension matter before the tribunal 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 as at the valuation date was 71.73 years.