There is no doubt about it a leasehold flat or house in Arnside is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of 125 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending sooner than later. The majority of flat owners in Arnside will qualify for this right; however a conveyancing solicitor can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Arnside with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Arnside can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Arnside lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Theo, started to get near to the 80-year mark with the lease on his basement apartment in Arnside. Having purchased his flat two decades ago, the unexpired term was of no importance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Theo arranged for a lease extension just under the wire in March. Theo and the freeholder in the end agreed on sum of £6,000 . If the lease had fallen to less than eighty years, the figure would have increased by at least £950.
In 2009 we were e-mailed by Mrs Jennifer Morel who, having was assigned a lease of a one bedroom flat in Arnside in August 2006. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparable flats in Arnside with 100 year plus lease were in the region of £216,000. The mid-range ground rent payable was £60 collected every twelve months. The lease lapsed on 8 November 2084. Having 58 years outstanding we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus costs.
In 2011 we were called by Mr and Mrs. F Jones who, having completed a first floor flat in Arnside in January 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative flats in Arnside with a long lease were valued about £200,000. The mid-range ground rent payable was £50 billed per annum. The lease end date was in 2104. Taking into account 78 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.