Endon leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay half 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 extra value that a lease extension will add to the property. Leasehold owners in Endon will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Endon with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Endon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
After unsuccessful negotiations with the landlord of her one bedroom apartment in Endon, Rachael started the lease extension process just as her lease was coming close to the critical eighty-year threshold. The lease extension was finalised in June 2006. The freeholder’s costs were negotiated to under 600 GBP.
Mr and Mrs. I Adams was assigned a lease of a studio apartment in Endon in February 2005. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparable properties in Endon with an extended lease were worth £191,400. The mid-range ground rent payable was £55 collected annually. The lease ended in 2080. Taking into account 54 years unexpired we approximated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 not including fees.
Last Spring we were e-mailed by Dr Jasper Rivera , who took over the lease of a one bedroom flat in Endon in May 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparable flats in Endon with a long lease were worth £295,000. The average ground rent payable was £45 collected per annum. The lease concluded on 23 August 2100. Given that there were 74 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.