The closer a residential lease in Belton nears to zero years unexpired, the more it reduces the value of the property. If the lease has, more than one hundred years to run then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner as opposed to later. Most flat owners in Belton will meet the qualifying criteria; nevertheless a lawyer can advise whether you qualify to extend your lease. 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.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Belton 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 conveyancer we work with provide it.
In the wake of 9 months of protracted discussions with the landlord of her garden apartment in Belton, Chantelle commenced the lease extension process just as her lease was coming close to the all-important 80-year deadline. The transaction completed in September 2009. The landlord’s charges were kept to an absolute minimum.
Ms Harriet Bonnet bought a first floor flat in Belton in July 2003. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical residencies in Belton with 100 year plus lease were valued around £200,000. The average amount of ground rent was £50 invoiced quarterly. The lease ended in 2104. Having 78 years unexpired we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
Dr Poppy Sánchez purchased a ground floor apartment in Belton in November 2000. The question was if we could estimate the premium could be for a 90 year extension to my lease. Identical residencies in Belton with an extended lease were valued around £267,600. The mid-range amount of ground rent was £65 collected quarterly. The lease expired on 16 July 2093. Considering the 67 years remaining we calculated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of costs.