It’s an underpublicised certainty that a Ingatestone residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Ingatestone property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Ingatestone will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Ingatestone lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Subsequent to unsuccessful negotiations with the landlord of her ground floor apartment in Ingatestone, Catherine started the lease extension process just as her lease was coming close to the critical 80-year deadline. The transaction was finalised in September 2011. The landlord’s charges were kept to an absolute minimum.
In 2011 we were e-mailed by Dr Imogen Rodríguez who, having took over the lease of a newly refurbished flat in Ingatestone in September 2004. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Identical properties in Ingatestone with an extended lease were worth £218,000. The mid-range ground rent payable was £45 billed annually. The lease expired in 2089. Considering the 63 years unexpired we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including legals.
Dr M Leroy took over the lease of a one bedroom flat in Ingatestone in May 2005. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparative premises in Ingatestone with a long lease were worth £265,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expiry date was in 2100. Considering the 74 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.