England Springs leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in England Springs will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in England Springs with over 100 years unexpired 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Godiva Mortgages | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure England Springs 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 conveyancing solicitor we work with provide it.
After unsuccessful negotiations with the landlord of her studio flat in England Springs, Natalie initiated the lease extension process just as the lease was nearing the critical 80-year mark. The legal work completed in January 2013. The landlord’s charges were kept to an absolute minimum.
Mr B Rose bought a first floor apartment in England Springs in August 2008. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative premises in England Springs with an extended lease were in the region of £218,000. The average ground rent payable was £45 invoiced every twelve months. The lease came to a finish on 17 October 2088. Having 63 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of expenses.
Mr and Mrs. K Brown was assigned a lease of a garden flat in England Springs in October 2005. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparative properties in England Springs with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £55 billed monthly. The lease concluded in 2099. Taking into account 74 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.