Arnold leases on domestic deteriorating in value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Arnold will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some cases you may not qualify. There are also strict timetables and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Arnold with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
The conveyancing solicitors that we work with handle Arnold lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Andrew was the the leasehold owner of a high value flat in Arnold on the market with a lease of a little over 72 years outstanding. Andrew informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Andrew to exercise his statutory right. Andrew obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. J Ward bought a garden flat in Arnold in June 2012. The question was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable premises in Arnold with 100 year plus lease were valued around £191,400. The mid-range ground rent payable was £55 collected per annum. The lease lapsed on 21 February 2079. Taking into account 54 years left we estimated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 plus fees.
Last year we were phoned by Dr Ryan Nelson , who bought a studio flat in Arnold in April 1999. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Comparable flats in Arnold with an extended lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease expired in 2099. Having 74 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.