The nearer a domestic lease in Groby and Ratby nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 100 years remaining then this decrease may be negligible however there will become a point in time when a lease has less than 80 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 primary rational as to why you should consider extending without delay. The majority of flat owners in Groby and Ratby will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise 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 under two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Engaging our service gives you enhanced control over the value of your Groby and Ratby leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Matthew, started to get close to the 80-year threshold with the lease on his one bedroom flat in Groby and Ratby. In buying his home two decades ago, the length of the lease was of minimal bearing. Luckily, he realised he needed to take steps soon on Extending the lease. Matthew was able to extend his lease at the eleventh hour last March. Matthew and the freeholder subsequently agreed on a premium of £6,000 . If he not met the deadline, the price would have gone up by a minimum £1,150.
In 2010 we were phoned by Ms O Wright who, having owned a one bedroom apartment in Groby and Ratby in May 2009. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Groby and Ratby with 100 year plus lease were valued about £198,800. The average amount of ground rent was £55 invoiced every twelve months. The lease ran out in 2080. Considering the 55 years unexpired we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including legals.
Dr F Díaz was assigned a lease of a ground floor apartment in Groby and Ratby in April 2010. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Groby and Ratby with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease finished on 12 September 2100. Given that there were 75 years left we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.