As the length of the unexpired term of a Congleton residential lease diminished so does its value and therefore the value of your property. If the lease has, over 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Congleton will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under 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 additional 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Congleton can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
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 Congleton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Zachary, started to get near to the eighty-year threshold with the lease on his basement flat in Congleton. Having bought his home 19 years previously, the length of the lease was of little importance. by good luck, he became aware that he would imminently be paying an inflated amount for Extending the lease. Zachary extended the lease at the eleventh hour last June. Zachary and the landlord who owned the flat above ultimately settled on the final figure of £6,000 . If he failed to meet the deadline, the price would have gone up by at least £925.
Dr Katie Brooks was assigned a lease of a one bedroom flat in Congleton in May 1996. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Comparable flats in Congleton with an extended lease were valued around £245,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease expired on 1 September 2093. Considering the 68 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
Last Spring we were approach by Mr and Mrs. U Edwards , who was assigned a lease of a studio apartment in Congleton in October 2001. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar flats in Congleton with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease concluded on 3 February 2104. Considering the 79 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of fees.