Earley leases on residential properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Earley will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Earley with over one hundred years unexpired on the lease are often regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Engaging our service gives you enhanced control over the value of your Earley leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Caleb owned a 2 bedroom flat in Earley on the market with a lease of a few days over 61 years outstanding. Caleb informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Caleb to invoke his statutory right. Caleb procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last month we were contacted by Mr and Mrs. S Lewis , who bought a recently refurbished apartment in Earley in March 2011. The question was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable residencies in Earley with an extended lease were worth £280,000. The average ground rent payable was £45 invoiced yearly. The lease ended on 11 May 2096. Taking into account 70 years left we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.
Ms Emma Garcia owned a basement flat in Earley in June 2006. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Identical premises in Earley with a long lease were worth £223,400. The average amount of ground rent was £60 billed monthly. The lease ran out in 2085. Given that there were 59 years unexpired we estimated the premium to the landlord for the lease extension to be within £27,600 and £31,800 not including legals.