The closer a domestic lease in Flamborough nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years left 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 rather than later. Many flat owners in Flamborough will meet the qualifying criteria; however a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Flamborough leasehold, as your property will be more valuable and marketable in terms of lease length should you wish 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.
Edward owned a studio flat in Flamborough on the market with a lease of a few days over 72 years left. Edward on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Edward to invoke his statutory right. Edward obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Spring we were contacted by Dr B Morris , who was assigned a lease of a studio flat in Flamborough in March 2012. The dilemma was if we could approximate the premium could be to prolong the lease by 90 years. Comparative residencies in Flamborough with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 invoiced annually. The lease finished on 1 November 2096. Taking into account 70 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
In 2011 we were approached by Dr V Lambert who, having was assigned a lease of a newly refurbished apartment in Flamborough in May 1999. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparative residencies in Flamborough with an extended lease were valued around £218,400. The mid-range amount of ground rent was £60 collected quarterly. The lease came to a finish on 12 November 2085. Considering the 59 years unexpired we approximated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 not including costs.