With a residential leasehold property in Coven, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years left. Anyone in Coven with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. When the lease term has under 80 years outstanding, under the current Act the freeholder can calculate and charge a larger amount, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service will provide you better control over the value of your Coven 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the landlord of her one bedroom flat in Coven, Emma initiated the lease extension process as the eighty year deadline was swiftly advancing. The lease extension completed in September 2011. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. G Morris was assigned a lease of a purpose-built flat in Coven in May 2002. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar properties in Coven with an extended lease were valued around £198,800. The mid-range ground rent payable was £55 billed quarterly. The lease expired on 12 February 2080. Considering the 55 years unexpired we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 not including expenses.
Last year we were approach by Mr T Ricardo , who purchased a newly refurbished apartment in Coven in July 2011. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparable premises in Coven with a long lease were in the region of £300,000. The mid-range ground rent payable was £50 billed annually. The lease elapsed on 2 May 2100. Considering the 75 years unexpired we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.