Countesthorpe leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Countesthorpe residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Countesthorpe you should investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Countesthorpe leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the freeholder of her one bedroom apartment in Countesthorpe, Laura started the lease extension process as the 80 year mark was fast nearing. The legal work was finalised in July 2009. The landlord’s charges were negotiated to below five hundred GBP.
In 2010 we were e-mailed by Mrs C Thomas who, having purchased a first floor apartment in Countesthorpe in October 2011. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparable properties in Countesthorpe with a long lease were worth £243,000. The mid-range ground rent payable was £65 invoiced yearly. The lease terminated in 2088. Taking into account 63 years unexpired we approximated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including legals.
In 2014 we were contacted by Ms C Rose who, having bought a recently refurbished apartment in Countesthorpe in November 1997. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable premises in Countesthorpe with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 billed per annum. The lease terminated in 2077. Taking into account 52 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.