Armthorpe leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Armthorpe tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Armthorpe you should investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Armthorpe,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 in-depth market knowledge and the close ties they enjoy with Armthorpe valuers.
In 2014 Jude, started to get near to the eighty-year threshold with the lease on his leasehold flat in Armthorpe. Having bought his home two decades ago, the unexpired term was of minimal bearing. Fortunately, he noticed he would imminently be paying an escalated premium for a lease extension. Jude extended the lease just under the wire in March. Jude and the landlord in the end agreed on a premium of £5,500 . If the lease had gone lower than eighty years, the price would have gone up by at least £1,075.
In 2010 we were phoned by Dr O François who, having moved into a basement apartment in Armthorpe in April 2011. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar premises in Armthorpe with 100 year plus lease were worth £246,800. The average ground rent payable was £60 billed quarterly. The lease terminated in 2075. Considering the 50 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of legals.
Mr and Mrs. P Garcia completed a first floor flat in Armthorpe in June 2008. The question was if we could approximate the premium would be for a 90 year extension to my lease. Identical premises in Armthorpe with an extended lease were valued about £208,200. The mid-range ground rent payable was £65 invoiced per annum. The lease terminated in 2086. Considering the 61 years outstanding we approximated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of fees.