Borough Green leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Borough Green will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain situations you may not qualify. There are prescribed timetables and procedures to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Borough Green can be a difficult process. We recommend you secure professional help 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 dealing with Borough Green 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 correspondence with the freeholder of her ground floor flat in Borough Green, Maisie started the lease extension process just as the lease was approaching the critical 80-year threshold. The legal work completed in February 2006. The landlord’s charges were negotiated to under five hundred pounds.
In 2011 we were contacted by Mr and Mrs. U Morel who, having bought a recently refurbished apartment in Borough Green in November 2011. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable properties in Borough Green with 100 year plus lease were valued around £264,000. The average amount of ground rent was £60 billed yearly. The lease ran out in 2079. Having 53 years outstanding we estimated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 not including costs.
Last Summer we were e-mailed by Mr and Mrs. N Pérez , who purchased a garden flat in Borough Green in May 2002. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparative residencies in Borough Green with 100 year plus lease were worth £225,400. The mid-range ground rent payable was £45 invoiced annually. The lease expired in 2090. Having 64 years unexpired we estimated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of legals.