The closer a domestic lease in Drybrook gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, beyond 99 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. Most flat owners in Drybrook will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
The conveyancers that we work with procure Drybrook lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Tommy owned a 2 bedroom apartment in Drybrook on the market with a lease of just over sixty years unexpired. Tommy on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Tommy to exercise his statutory right. Tommy procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2009 we were contacted by Mrs Francesca Vincent who, having bought a ground floor flat in Drybrook in August 2000. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Drybrook with an extended lease were worth £267,600. The mid-range amount of ground rent was £65 collected yearly. The lease concluded on 8 March 2092. Given that there were 67 years unexpired we approximated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 plus legals.
Mr H Bailey moved into a ground floor apartment in Drybrook in February 2005. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical homes in Drybrook with a long lease were in the region of £206,200. The average amount of ground rent was £60 billed every twelve months. The lease ended on 3 January 2081. Considering the 56 years remaining we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including fees.