Endon leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Endon will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain situations you may not be entitled. There are prescribed timetables and procedures to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Endon with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Endon,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Endon valuers.
After protracted correspondence with the landlord of her garden apartment in Endon, Ashleigh commenced the lease extension process as the 80 year deadline was rapidly nearing. The transaction completed in July 2014. The landlord’s charges were kept to an absolute minimum.
Last month we were phoned by Dr Archie Ali , who acquired a studio apartment in Endon in July 2012. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparable flats in Endon with 100 year plus lease were worth £223,400. The average ground rent payable was £60 invoiced quarterly. The lease end date was in 2085. Having 59 years unexpired we calculated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 exclusive of legals.
In 2012 we were e-mailed by Mr Aiden Norbert who, having completed a studio flat in Endon in October 2010. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Endon with an extended lease were valued about £205,000. The average amount of ground rent was £50 collected annually. The lease terminated on 16 June 2105. Taking into account 79 years as a residual term we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.