The nearer a domestic lease in Biddulph nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Biddulph will qualify for this right; however a conveyancer can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Biddulph,the lease extension lawyers 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 Biddulph valuers.
16 months ago Ibrahim, came critically near to the eighty-year threshold with the lease on his ground floor flat in Biddulph. In buying his property 18 years ago, the lease term was of little importance. Luckily, he recognised he needed to take steps soon on Extending the lease. Ibrahim was able to extend his lease just in the nick of time in June. Ibrahim and the freeholder via the management company eventually agreed on the final figure of £5,500 . If the lease had fallen below 80 years, the amount would have gone up by a minimum £1,025.
Mr M Ramírez owned a basement flat in Biddulph in July 2004. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical flats in Biddulph with a long lease were valued about £183,600. The mid-range amount of ground rent was £65 billed monthly. The lease came to a finish in 2083. Considering the 57 years left we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of fees.
Last Spring we were phoned by Dr Alfie Cooper , who was assigned a lease of a one bedroom flat in Biddulph in August 2000. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable premises in Biddulph with 100 year plus lease were valued about £245,000. The average amount of ground rent was £50 collected per annum. The lease elapsed on 20 January 2094. Given that there were 68 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.