As the length of the unexpired term of a Arthog residential lease diminished so does its value and therefore the value of your property. Where the residual term has, over 100 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Most flat owners in Arthog will qualify for this right; that being said a conveyancer can advise if you are eligible 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 Arthog with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Arthog,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Arthog valuers.
Ben was the the leasehold owner of a high value apartment in Arthog on the market with a lease of fraction over fifty eight years outstanding. Ben informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ben to exercise his statutory right. Ben obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2013 we were e-mailed by Mr and Mrs. R Nelson who, having completed a one bedroom flat in Arthog in January 2006. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar premises in Arthog with a long lease were worth £254,200. The average amount of ground rent was £60 invoiced yearly. The lease elapsed in 2077. Taking into account 51 years outstanding we estimated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 not including costs.
Mr and Mrs. P Morgan was assigned a lease of a first floor apartment in Arthog in July 2004. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative properties in Arthog with 100 year plus lease were valued around £210,600. The mid-range ground rent payable was £45 invoiced per annum. The lease elapsed in 2088. Having 62 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus fees.