Atherstone leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, 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 start incurring an additional element called marriage value. Leasehold owners in Atherstone will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some cases you may not qualify. There are prescribed timetables and steps to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Atherstone can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 Atherstone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ollie was the the leasehold owner of a 2 bedroom apartment in Atherstone on the market with a lease of fraction over sixty years outstanding. Ollie on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Ollie to exercise his statutory right. Ollie procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2012 we were contacted by Dr Yasmin Williams who, having moved into a one bedroom flat in Atherstone in June 2006. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Similar flats in Atherstone with a long lease were worth £225,400. The mid-range ground rent payable was £45 collected quarterly. The lease ran out in 2090. Having 64 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 not including legals.
In 2012 we were phoned by Mr and Mrs. R Lewis who, having purchased a one bedroom flat in Atherstone in April 2010. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical residencies in Atherstone with a long lease were valued around £270,000. The average amount of ground rent was £55 collected quarterly. The lease came to a finish on 23 July 2101. Given that there were 75 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.