Unfortunately that a Capel St Mary residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Capel St Mary property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term falls below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Capel St Mary will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly 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 |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
The conveyancing solicitors that we work with undertake Capel St Mary 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 conveyancing solicitor we work with provide it.
Subsequent to unsuccessful correspondence with the landlord of her leasehold apartment in Capel St Mary, Lucy commenced the lease extension process just as the lease was nearing the critical eighty-year mark. The transaction was concluded in April 2012. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were phoned by Mr and Mrs. V Brooks , who took over the lease of a first floor apartment in Capel St Mary in February 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Capel St Mary with 100 year plus lease were worth £166,800. The mid-range amount of ground rent was £50 invoiced per annum. The lease concluded on 17 March 2076. Having 50 years remaining we estimated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus professional charges.
Dr F Dupont purchased a purpose-built apartment in Capel St Mary in June 1995. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Identical homes in Capel St Mary with 100 year plus lease were valued around £280,000. The average amount of ground rent was £45 invoiced monthly. The lease elapsed on 14 June 2096. Taking into account 70 years unexpired we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.