Glenfield leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Glenfield tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Glenfield you would be well advised to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Lease extensions in Glenfield can be a difficult process. We recommend you procure professional help from a conveyancer 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 in-depth market knowledge dealing with Glenfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Adam, started to get near to the eighty-year mark with the lease on his first floor apartment in Glenfield. In buying his flat 19 years ago, the lease term was of no importance. Thankfully, he realised he would imminently be paying way over the odds for a lease extension. Adam extended the lease just under the wire last June. Adam and the landlord who owned the flat above in the end settled on sum of £5,500 . If he not met the deadline, the price would have become more exhorbitant by at least £1,025.
In 2009 we were approached by Dr Logan Moore who, having moved into a basement apartment in Glenfield in April 2005. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Similar properties in Glenfield with 100 year plus lease were worth £300,000. The average ground rent payable was £50 billed monthly. The lease elapsed in 2101. Considering the 75 years remaining we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.
In 2014 we were phoned by Mrs K Bonnet who, having completed a one bedroom apartment in Glenfield in April 2003. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Glenfield with a long lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced quarterly. The lease expiry date was in 2090. Having 64 years outstanding we calculated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of expenses.