The nearer a residential lease in Groby gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Groby will qualify for this right; however a lawyer can confirm whether you qualify for a lease extension. 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 conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service gives you increased control over the value of your Groby leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the landlord of her leasehold apartment in Groby, Ashleigh started the lease extension process just as her lease was nearing the all-important 80-year threshold. The lease extension completed in October 2014. The freeholder’s charges were restricted to under 600 GBP.
Mr and Mrs. N Miller acquired a purpose-built apartment in Groby in September 2000. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Identical flats in Groby with a long lease were worth £255,000. The mid-range ground rent payable was £50 invoiced monthly. The lease finished in 2096. Having 70 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Last month we were approach by Ms Lauren Mitchell , who completed a studio flat in Groby in May 1997. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Groby with an extended lease were valued around £246,800. The average amount of ground rent was £60 billed quarterly. The lease came to a finish on 10 October 2076. Having 50 years as a residual term we calculated the premium to the landlord for the lease extension to be within £44,700 and £51,600 exclusive of costs.