As the length of the unexpired term of a Borehamwood and Elstree domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, beyond 99 years to run then this decrease may be fractional however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Borehamwood and Elstree will qualify for this right; however a conveyancing solicitor can confirm if you are eligible to extend your lease. In certain 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 considered that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, 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. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
The conveyancing solicitors that we work with procure Borehamwood and Elstree 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.
Two years ago Ollie, came dangerously near to the eighty-year threshold with the lease on his studio apartment in Borehamwood and Elstree. In buying his home 19 years ago, the unexpired term was of little bearing. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Ollie extended the lease just in the nick of time in August. Ollie and the freeholder eventually agreed on an amount of £6,000 . If he not met the deadline, the sum would have become more exhorbitant by at least £1,150.
In 2009 we were called by Ms N Davis who, having acquired a newly refurbished apartment in Borehamwood and Elstree in September 2005. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Similar properties in Borehamwood and Elstree with an extended lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease termination date was on 18 November 2099. Considering the 74 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
Last year we were e-mailed by Mr J García , who bought a one bedroom apartment in Borehamwood and Elstree in August 2001. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar properties in Borehamwood and Elstree with an extended lease were valued around £243,000. The mid-range amount of ground rent was £65 billed monthly. The lease ended in 2088. Having 63 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of expenses.