As the the remaining lease term of a Costessey residential lease diminished so does its value and therefore the value of your property. Where the residual term has, in excess of 100 years remaining then this decrease may be fractional however 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 termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease sooner than later. Many flat owners in Costessey will meet the qualifying criteria; that being said a conveyancer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Costessey with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Costessey,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Costessey valuers.
Ali owned a conversion apartment in Costessey on the market with a lease of a little over 72 years left. Ali on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ali to invoke his statutory right. Ali obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Christmas we were called by Mr Gabriel Lee , who took over the lease of a studio apartment in Costessey in March 2003. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar flats in Costessey with a long lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease expired on 26 October 2086. Having 60 years left we estimated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including legals.
Ms L Lambert took over the lease of a basement flat in Costessey in July 1995. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Identical homes in Costessey with a long lease were valued around £255,000. The mid-range ground rent payable was £50 invoiced monthly. The lease elapsed in 2097. Having 71 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.