Arnside leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Arnside will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and steps to comply with once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Arnside leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Matthew was the the leasehold owner of a conversion flat in Arnside being sold with a lease of just over fifty eight years unexpired. Matthew on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Matthew to exercise his statutory right. Matthew procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
In 2011 we were phoned by Dr D André who, having was assigned a lease of a one bedroom apartment in Arnside in July 2012. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical premises in Arnside with 100 year plus lease were in the region of £243,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease came to a finish on 20 June 2089. Considering the 63 years unexpired we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 not including fees.
In 2014 we were called by Ms O Bailey who, having completed a newly refurbished flat in Arnside in September 1995. The question was if we could estimate the price could be to extend the lease by an additional years. Comparative homes in Arnside with 100 year plus lease were valued around £181,600. The mid-range amount of ground rent was £55 invoiced monthly. The lease ended in 2078. Taking into account 52 years left we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.