When it comes to residential leasehold property in Arkley, you are actually purchasing an entitlement to reside in a property for a set 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 long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Leasehold owners in Arkley with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When a lease has below eighty years outstanding, under the relevant legislation the landlord can calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Arkley with more than one hundred years unexpired 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Arkley,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Arkley valuers.
During the course of the last few months Luke, came perilously near to the 80-year threshold with the lease on his first floor apartment in Arkley. In buying his flat two decades ago, the length of the lease was of minimal relevance. Thankfully, he noticed he needed to take steps soon on Extending the lease. Luke was able to extend his lease just ahead of time last August. Luke and the freeholder via the managing agents eventually settled on a premium of £5,000 . If he not met the deadline, the price would have increased by at least £950.
In 2013 we were e-mailed by Dr Benjamin Anderson who, having was assigned a lease of a basement flat in Arkley in April 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical homes in Arkley with 100 year plus lease were valued around £280,000. The average ground rent payable was £45 billed quarterly. The lease ended in 2096. Having 70 years left we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.
An example of a Lease Extension case for a Arkley flat 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 lease term was 71.73 years.