Arnside leases on residential deteriorating in value. Where your lease has about ninety years remaining, 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 begin incurring an additional element called marriage value. Leasehold owners in Arnside will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some situations you may not be entitled. There are prescribed deadlines and steps to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Arnside with over one hundred years left 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Lease extensions in Arnside can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.
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.
In the wake of eight months of lengthy discussions with the freeholder of her ground floor apartment in Arnside, Ellie started the lease extension process just as her lease was coming close to the all-important eighty-year mark. The legal work completed in June 2012. The landlord’s fees were kept to an absolute minimum.
In 2013 we were phoned by Mr and Mrs. E Nelson who, having acquired a basement flat in Arnside in July 2006. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparative homes in Arnside with 100 year plus lease were valued around £250,400. The mid-range amount of ground rent was £65 billed per annum. The lease elapsed on 15 June 2090. Given that there were 64 years left we estimated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 not including fees.
Dr J Cox took over the lease of a ground floor flat in Arnside in September 2002. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Similar residencies in Arnside with 100 year plus lease were in the region of £189,000. The mid-range ground rent payable was £55 billed monthly. The lease elapsed on 8 May 2079. Taking into account 53 years outstanding we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including fees.