There is no doubt about it a leasehold flat or house in Filey is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 100 years to run then this decrease may be fractional however there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner than later. The majority of flat owners in Filey will qualify for this right; nevertheless a lawyer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Filey 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.
Subsequent to unsuccessful discussions with the landlord of her two bedroom flat in Filey, Isabella commenced the lease extension process as the 80 year mark was fast approaching. The lease extension was finalised in September 2010. The freeholder’s charges were negotiated to approximately 650 pounds.
Last Spring we were phoned by Mr and Mrs. B Mercier , who was assigned a lease of a one bedroom flat in Filey in March 2005. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Identical premises in Filey with a long lease were worth £243,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease came to a finish on 25 September 2089. Taking into account 63 years outstanding we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.
Ms Hannah Williams was assigned a lease of a purpose-built flat in Filey in April 2000. The question was if we could estimate the premium would likely be for a ninety year lease extension. Comparative properties in Filey with a long lease were valued about £181,600. The average amount of ground rent was £55 invoiced annually. The lease elapsed on 25 July 2078. Given that there were 52 years remaining we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of costs.