Atherstone leases on domestic deteriorating in value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. 80 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. Flat owners in Atherstone will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Atherstone 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.
In the wake of eight months of protracted negotiations with the landlord of her leasehold flat in Atherstone, Jessica started the lease extension process as the 80 year threshold was fast coming. The lease extension completed in June 2009. The landlord’s charges were negotiated to approximately 450 GBP.
Dr G Hill purchased a first floor apartment in Atherstone in November 2005. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparable homes in Atherstone with an extended lease were valued around £261,600. The mid-range amount of ground rent was £60 collected quarterly. The lease ended on 15 August 2078. Having 52 years left we calculated the premium to the landlord for the lease extension to be between £39,000 and £45,000 plus professional charges.
Last Autumn we were called by Dr E Torres , who was assigned a lease of a first floor apartment in Atherstone in March 2012. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Atherstone with an extended lease were valued around £218,000. The mid-range ground rent payable was £45 invoiced per annum. The lease lapsed in 2089. Considering the 63 years outstanding we calculated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including legals.