It’s a harsh certainty that a Garston residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Garston property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining slips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Garston will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold properties in Garston with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Garston can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Garston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of unsuccessful correspondence with the landlord of her purpose-built apartment in Garston, Tia initiated the lease extension process just as the lease was approaching the crucial 80-year threshold. The legal work was finalised in September 2010. The freeholder’s costs were negotiated to under 450 pounds.
Last Spring we were approach by Mr Kai Adams , who purchased a basement apartment in Garston in January 1997. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Garston with 100 year plus lease were valued about £205,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease ended on 17 March 2104. Given that there were 79 years outstanding we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.
In 2009 we were called by Dr Bethan Carter who, having was assigned a lease of a basement flat in Garston in March 2008. The dilemma was if we could estimate the price would likely be to extend the lease by 90 years. Comparable residencies in Garston with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease terminated in 2093. Having 68 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.