As the the remaining lease term of a East Hunsbury residential lease lessens so does its value and therefore the value of your property. Where the lease has, beyond one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner as opposed to later. Most flat owners in East Hunsbury will qualify for this right; that being said a lawyer should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in East Hunsbury with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in East Hunsbury,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with East Hunsbury valuers.
Half a year ago Rory, started to get near to the eighty-year threshold with the lease on his first floor flat in East Hunsbury. Having bought his property 19 years previously, the length of the lease was of little importance. Luckily, he realised he would imminently be paying an escalated premium for Extending the lease. Rory was able to extend his lease just in the nick of time in July. Rory and the freeholder via the management company eventually settled on an amount of £5,000 . If he had missed the deadline, the premium would have increased by at least £1,050.
Ms Charlotte Smith bought a garden apartment in East Hunsbury in January 2007. The question was if we could approximate the premium would be to prolong the lease by an additional years. Similar residencies in East Hunsbury with 100 year plus lease were worth £246,800. The average amount of ground rent was £60 collected every twelve months. The lease expired in 2076. Taking into account 50 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 not including legals.
In 2013 we were e-mailed by Dr Y Martin who, having was assigned a lease of a one bedroom apartment in East Hunsbury in July 1999. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Identical premises in East Hunsbury with an extended lease were valued around £203,200. The mid-range amount of ground rent was £65 billed annually. The lease elapsed in 2087. Given that there were 61 years left we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including professional charges.