With a long leasehold property in East Barming, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than eighty years remaining. Leasehold owners in East Barming with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has under 80 years left, under the current statute the landlord can calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in East Barming can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring East Barming lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Daniel, started to get near to the 80-year mark with the lease on his ground floor flat in East Barming. Having purchased his property two decades ago, the lease term was of little relevance. by good luck, he became aware that he would soon be paying an escalated premium for a lease extension. Daniel arranged for a lease extension at the eleventh hour in July. Daniel and the landlord subsequently settled on sum of £5,000 . If he failed to meet the deadline, the premium would have become more exhorbitant by a minimum £1,125.
Mr and Mrs. W Cook completed a recently refurbished apartment in East Barming in May 2012. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar properties in East Barming with an extended lease were worth £260,000. The average ground rent payable was £50 billed annually. The lease terminated in 2098. Considering the 72 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Dr Daisy Davis moved into a garden flat in East Barming in June 2000. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparable flats in East Barming with 100 year plus lease were in the region of £261,600. The mid-range amount of ground rent was £60 billed per annum. The lease lapsed in 2078. Taking into account 52 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 plus costs.