As the length of the unexpired term of a Friday Hill domestic lease decreases so does its value and therefore the value of your property. If the residual term has, more than 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 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 primary reason why you should extend the lease sooner as opposed to later. Many flat owners in Friday Hill will meet the qualifying criteria; nevertheless a lawyer should be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Friday Hill with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
The lawyers that we work with procure Friday Hill 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 conveyancer we work with provide it.
In 2014 Elijah, came very close to the eighty-year mark with the lease on his two bedroom apartment in Friday Hill. Having purchased his home two decades ago, the unexpired term was of minimal bearing. by good luck, he noticed he would imminently be paying an escalated premium for Extending the lease. Elijah extended the lease just under the wire in May. Elijah and the freeholder via the management company ultimately settled on a premium of £5,500 . If the lease had gone to less than eighty years, the sum would have escalated by at least £1,000.
Last month we were approach by Mr and Mrs. T Martin , who acquired a newly refurbished apartment in Friday Hill in August 2000. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar premises in Friday Hill with an extended lease were in the region of £270,000. The average amount of ground rent was £55 billed every twelve months. The lease terminated in 2101. Taking into account 75 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.
Last Autumn we were approach by Dr B Ali , who moved into a basement apartment in Friday Hill in September 2002. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Identical premises in Friday Hill with a long lease were worth £173,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease lapsed in 2081. Considering the 55 years outstanding we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus legals.