There is no doubt about it a leasehold flat or house in Glenfield is a wasting asset as a result of the diminishing lease term. If the lease has, more than 100 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner than later. The majority of flat owners in Glenfield will meet the qualifying criteria; however a conveyancing solicitor can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Glenfield leasehold, as your property will be more valuable and saleable in relation to the 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.
Trailing unsuccessful discussions with the freeholder of her purpose-built apartment in Glenfield, Megan started the lease extension process as the 80 year deadline was quickly approaching. The transaction was finalised in July 2007. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were contacted by Mr and Mrs. J Thompson who, having was assigned a lease of a basement flat in Glenfield in January 2000. The question was if we could approximate the premium could be for a 90 year lease extension. Identical flats in Glenfield with an extended lease were in the region of £290,000. The average ground rent payable was £45 collected yearly. The lease ran out on 8 November 2099. Considering the 73 years as a residual term we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.
Last Summer we were called by Dr M Collins , who acquired a basement flat in Glenfield in October 2008. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparative residencies in Glenfield with 100 year plus lease were valued around £240,600. The mid-range ground rent payable was £60 invoiced monthly. The lease came to a finish on 14 May 2088. Taking into account 62 years remaining we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus professional charges.