As the length of the unexpired term of a Church Village domestic lease lessens so does its value and therefore the value of your property. If the residual term has, over one hundred years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Church Village will qualify for this right; nevertheless a conveyancing solicitor can advise whether you are eligible for a lease extension. 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 accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to 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. |
| 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. |
| 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 Church Village can be a difficult process. We recommend you get 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 a wealth of experience procuring Church Village lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leon owned a high value flat in Church Village on the market with a lease of fraction over sixty years outstanding. Leon on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Leon to exercise his statutory right. Leon procured expert advice and secured satisfactory resolution without going to tribunal and sell the property.
In 2014 we were approached by Mrs S Thomas who, having bought a basement flat in Church Village in June 2004. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Identical residencies in Church Village with a long lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease ended on 3 May 2102. Considering the 76 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Last year we were contacted by Mr and Mrs. N Young , who moved into a ground floor flat in Church Village in October 1998. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative properties in Church Village with 100 year plus lease were valued around £176,200. The mid-range ground rent payable was £65 invoiced monthly. The lease ran out in 2082. Considering the 56 years left we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 plus costs.