There is no doubt about it a leasehold property in Earley is a wasting asset as a result of the shortening lease. If the residual term has, more than 100 years remaining then this decrease may be negligible nevertheless there will become a stage 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 be significant. It is the main logic behind why you should consider extending sooner rather than later. Many flat owners in Earley will meet the qualifying criteria; that being said a conveyancer will be able to advise whether you qualify 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 residencies in Earley with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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 Earley,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Earley valuers.
After unsuccessful negotiations with the freeholder of her garden apartment in Earley, Jennifer initiated the lease extension process as the eighty year deadline was fast nearing. The lease extension was concluded in July 2006. The landlord’s charges were negotiated to a tad over 500 GBP.
Mrs Francesca Johnson acquired a ground floor flat in Earley in May 2001. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical homes in Earley with 100 year plus lease were worth £265,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ended on 22 November 2092. Considering the 66 years left we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including legals.
Last Autumn we were approach by Dr J Michel , who moved into a purpose-built apartment in Earley in October 2001. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar flats in Earley with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 invoiced quarterly. The lease end date was in 2081. Having 55 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus costs.