The nearer a domestic lease in Choppington nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 99 years to run then this decrease may be of little impact that being said there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Choppington will meet the qualifying criteria; that being said a lawyer should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service gives you increased control over the value of your Choppington leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Thomas, came precariously near to the eighty-year mark with the lease on his first floor apartment in Choppington. Having purchased his home 18 years ago, the lease term was of no importance. Luckily, he realised he needed to take steps soon on a lease extension. Thomas extended the lease just under the wire in July. Thomas and the landlord ultimately agreed on an amount of £5,500 . If he failed to meet the deadline, the sum would have increased by at least £1,075.
Last Autumn we were phoned by Dr Yasmin González , who completed a newly refurbished apartment in Choppington in February 2002. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparable homes in Choppington with an extended lease were in the region of £250,400. The average ground rent payable was £65 collected quarterly. The lease lapsed in 2089. Having 64 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 not including expenses.
In 2010 we were phoned by Mrs Y Adams who, having bought a one bedroom apartment in Choppington in July 1997. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable premises in Choppington with 100 year plus lease were valued around £184,000. The average amount of ground rent was £55 billed quarterly. The lease elapsed in 2078. Considering the 53 years left we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of costs.