Garston leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Garston enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Garston you would be well advised to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Garston with over 100 years outstanding 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 premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service will provide you increased control over the value of your Garston leasehold, as your property will be more valuable and saleable 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.
Two years ago Connor, came dangerously close to the 80-year mark with the lease on his purpose- built flat in Garston. Having bought his property 19 years previously, the unexpired term was of no interest. Thankfully, he recognised he needed to take steps soon on a lease extension. Connor arranged for a lease extension at the eleventh hour in June. Connor and the landlord eventually agreed on a premium of £5,500 . If he had missed the deadline, the amount would have become more costly by a minimum £1,025.
Last Autumn we were approach by Dr Chantelle Khan , who purchased a basement apartment in Garston in July 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Identical properties in Garston with an extended lease were in the region of £257,800. The average amount of ground rent was £65 collected per annum. The lease ran out in 2091. Taking into account 65 years unexpired we approximated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of costs.
Last Christmas we were phoned by Mr and Mrs. U Martínez , who completed a basement flat in Garston in May 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Garston with an extended lease were in the region of £191,400. The mid-range ground rent payable was £55 invoiced annually. The lease end date was on 14 August 2080. Taking into account 54 years unexpired we approximated the premium to the landlord for the lease extension to be between £34,200 and £39,600 not including costs.