With a domestic leasehold property in Barton Le Clay, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are less than eighty years remaining. Residents in Barton Le Clay with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has fewer than eighty years outstanding, under the relevant statute the landlord is entitled to calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Barton Le Clay 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.
Trailing unsuccessful negotiations with the freeholder of her leasehold flat in Barton Le Clay, Maisie started the lease extension process just as the lease was coming close to the all-important 80-year mark. The lease extension was concluded in April 2012. The freeholder’s fees were kept to an absolute minimum.
Last May we were contacted by Dr Nathan Morgan , who owned a ground floor apartment in Barton Le Clay in March 2002. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Similar properties in Barton Le Clay with an extended lease were valued around £285,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease lapsed in 2104. Having 79 years remaining we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.
Dr Lydia Hall completed a first floor apartment in Barton Le Clay in April 2008. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative homes in Barton Le Clay with a long lease were in the region of £193,400. The average amount of ground rent was £65 collected quarterly. The lease lapsed in 2084. Given that there were 59 years left we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 plus fees.