There is no doubt about it a leasehold property in Binstead is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 125 years to run then this decrease may be fractional however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Binstead will meet the qualifying criteria; however a conveyancer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire Building Society | 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. |
Lease extensions in Binstead can be a difficult process. We recommend you procure professional help from a lawyer and valuer 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 in-depth market knowledge dealing with Binstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Edward was the the leasehold owner of a studio flat in Binstead on the market with a lease of a little over 72 years left. Edward informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Edward to invoke his statutory right. Edward procured expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
Dr H Mason acquired a one bedroom apartment in Binstead in November 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Identical homes in Binstead with a long lease were valued around £210,600. The mid-range ground rent payable was £45 collected annually. The lease finished in 2088. Considering the 62 years remaining we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 not including professional charges.
In 2011 we were e-mailed by Mrs K Kelly who, having moved into a ground floor apartment in Binstead in November 2005. The question was if we could approximate the price could be to extend the lease by a further 90 years. Identical properties in Binstead with 100 year plus lease were worth £260,000. The average ground rent payable was £50 collected annually. The lease terminated on 8 August 2099. Considering the 73 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.