Freshford leases on domestic deteriorating in value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual 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 Freshford will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Freshford with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Freshford can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Freshford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Eli, came precariously close to the 80-year threshold with the lease on his purpose- built apartment in Freshford. Having bought his home two decades ago, the unexpired term was of minimal bearing. Luckily, he recognised he would soon be paying an inflated amount for a lease extension. Eli was able to extend his lease just ahead of time in June. Eli and the landlord who owned the flat above ultimately settled on the final figure of £6,000 . If he failed to meet the deadline, the amount would have increased by at least £875.
In 2014 we were phoned by Mrs G Rogers who, having moved into a garden flat in Freshford in September 1999. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative premises in Freshford with a long lease were worth £300,000. The average ground rent payable was £50 collected quarterly. The lease expired on 23 July 2101. Considering the 76 years remaining we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.
In 2013 we were e-mailed by Mr and Mrs. W Bennett who, having owned a garden flat in Freshford in June 1996. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical flats in Freshford with 100 year plus lease were worth £252,800. The mid-range ground rent payable was £65 billed yearly. The lease ended on 16 January 2090. Given that there were 65 years remaining we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus legals.