Borrowash leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Borrowash residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Borrowash you would be well advised to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Borrowash can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor 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 a wealth of experience dealing with Borrowash lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Milo, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Borrowash. Having bought his flat 19 years previously, the unexpired term was of little significance. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Milo extended the lease just ahead of time last April. Milo and the freeholder via the managing agents eventually settled on sum of £5,500 . If he had missed the deadline, the price would have increased by a minimum £1,050.
In 2012 we were e-mailed by Dr Y Ali who, having purchased a garden apartment in Borrowash in November 2000. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar premises in Borrowash with 100 year plus lease were valued about £250,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease finished in 2095. Taking into account 69 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
In 2009 we were approached by Dr O Nguyen who, having bought a recently refurbished flat in Borrowash in October 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Borrowash with an extended lease were worth £290,000. The average ground rent payable was £60 invoiced every twelve months. The lease expired on 23 September 2106. Having 80 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including legals.