As the the remaining lease term of a Enderby residential lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 125 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Enderby will meet the qualifying criteria; that being said a conveyancing solicitor can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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 |
Lease extensions in Enderby can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer 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 dealing with Enderby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted discussions with the landlord of her purpose-built apartment in Enderby, Alicia initiated the lease extension process just as the lease was approaching the critical 80-year threshold. The lease extension completed in October 2011. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were contacted by Mr and Mrs. K White who, having purchased a one bedroom flat in Enderby in June 2003. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparable properties in Enderby with a long lease were worth £233,200. The mid-range ground rent payable was £60 billed per annum. The lease came to a finish on 13 August 2087. Considering the 61 years remaining we estimated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of expenses.
Dr Edward Morris bought a first floor flat in Enderby in February 1998. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical properties in Enderby with an extended lease were in the region of £171,800. The mid-range amount of ground rent was £55 collected monthly. The lease came to a finish on 7 May 2076. Taking into account 50 years unexpired we estimated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 not including costs.