The closer a domestic lease in Binstead gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond 100 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Binstead will qualify for this right; nevertheless a conveyancing solicitor will be able to advise if you are eligible for a lease extension. 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 generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | 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. |
Lease extensions in Binstead can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Binstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the freeholder of her one bedroom apartment in Binstead, Leah commenced the lease extension process as the eighty year threshold was rapidly advancing. The transaction was finalised in November 2010. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were called by Mr and Mrs. M Cook who, having took over the lease of a garden flat in Binstead in July 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Similar residencies in Binstead with 100 year plus lease were valued about £265,000. The mid-range ground rent payable was £50 collected yearly. The lease elapsed in 2100. Given that there were 74 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Last month we were approach by Mr and Mrs. Y Mason , who bought a garden apartment in Binstead in March 2003. We are asked if we could estimate the price would be for a 90 year lease extension. Comparative premises in Binstead with a long lease were worth £166,400. The mid-range amount of ground rent was £60 collected yearly. The lease terminated in 2080. Having 54 years remaining we calculated the premium to the landlord for the lease extension to be between £32,300 and £37,400 not including legals.