As the the remaining lease term of a Felixstowe domestic lease lessens so does its value and therefore the value of your property. If the residual term has, over 99 years to run then this decrease may be fractional however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Felixstowe will qualify for this right; nevertheless a conveyancing solicitor should be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Felixstowe leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the landlord of her studio flat in Felixstowe, Ellie started the lease extension process just as the lease was coming close to the critical eighty-year threshold. The lease extension was finalised in November 2014. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were contacted by Mr Sebastian Cooper , who completed a purpose-built flat in Felixstowe in June 2008. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Comparable homes in Felixstowe with 100 year plus lease were worth £184,000. The mid-range ground rent payable was £55 collected annually. The lease expired in 2079. Considering the 53 years outstanding we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of costs.
Mr and Mrs. F García owned a studio apartment in Felixstowe in May 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative properties in Felixstowe with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 billed annually. The lease concluded in 2099. Taking into account 73 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.