As the the remaining lease term of a Countesthorpe domestic lease decreases so does its value and therefore the value of your property. If the residual term has, beyond 99 years to run then this decrease may be fractional however there will become a point in time when a lease has under than eighty years left 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 main logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Countesthorpe will meet the qualifying criteria; however a conveyancing solicitor can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Countesthorpe with in excess of one hundred years remaining 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Countesthorpe can be a difficult process. We recommend you procure guidance from a conveyancer 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 Countesthorpe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
David was the the leasehold owner of a high value flat in Countesthorpe on the market with a lease of just over 59 years left. David informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were David to exercise his statutory right. David obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Dr U Moreau acquired a garden apartment in Countesthorpe in October 2012. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Identical homes in Countesthorpe with 100 year plus lease were valued about £210,000. The average ground rent payable was £50 billed yearly. The lease finished in 2106. Having 80 years left we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.
In 2010 we were e-mailed by Mr and Mrs. K Taylor who, having moved into a garden apartment in Countesthorpe in January 2007. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Countesthorpe with a long lease were worth £275,000. The average ground rent payable was £45 invoiced quarterly. The lease expired on 5 June 2095. Taking into account 69 years outstanding we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.