As the the remaining lease term of a Emersons Green residential lease decreases so does its value and therefore the value of your property. Where the lease has, more than 100 years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. Most flat owners in Emersons Green will meet the qualifying criteria; however a conveyancer should be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same 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 many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
Engaging our service will provide you enhanced control over the value of your Emersons Green leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Teddy was the the leasehold proprietor of a 2 bedroom flat in Emersons Green on the market with a lease of fraction over 59 years unexpired. Teddy on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Teddy to invoke his statutory right. Teddy procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Winter we were phoned by Mr and Mrs. T Campbell , who purchased a first floor flat in Emersons Green in April 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparative flats in Emersons Green with an extended lease were in the region of £275,000. The average amount of ground rent was £45 collected per annum. The lease lapsed on 6 May 2094. Given that there were 69 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.
In 2011 we were contacted by Dr R Alexander who, having was assigned a lease of a basement apartment in Emersons Green in May 2009. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable premises in Emersons Green with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected every twelve months. The lease elapsed in 2083. Considering the 58 years left we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of fees.