There is no doubt about it a leasehold property in Cornhill On Tweed is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Cornhill On Tweed will qualify for this right; that being said a conveyancing solicitor will be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Cornhill On Tweed leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Owen, started to get near to the eighty-year mark with the lease on his garden flat in Cornhill On Tweed. Having purchased his property 19 years ago, the lease term was of no importance. As luck would have it, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Owen extended the lease at the eleventh hour in January. Owen and the freeholder ultimately settled on a premium of £5,000 . If he failed to meet the deadline, the price would have increased by a minimum £975.
Last year we were contacted by Mr and Mrs. P López , who took over the lease of a first floor apartment in Cornhill On Tweed in January 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Similar properties in Cornhill On Tweed with an extended lease were valued about £280,000. The mid-range ground rent payable was £45 collected monthly. The lease termination date was in 2095. Given that there were 70 years left we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
In 2013 we were called by Mrs E Johnson who, having purchased a first floor flat in Cornhill On Tweed in August 2002. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Similar homes in Cornhill On Tweed with 100 year plus lease were worth £218,400. The mid-range ground rent payable was £60 invoiced yearly. The lease elapsed in 2084. Having 59 years remaining we calculated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 plus legals.