Unfortunately that a Ingatestone residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Ingatestone property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay half 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 whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same 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 ahead.
| 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. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
The conveyancers that we work with undertake 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 lawyer we work with provide it.
Last October Seth, started to get close to the eighty-year mark with the lease on his garden apartment in Ingatestone. Having purchased his property 19 years ago, the unexpired term was of no significance. by good luck, he noticed he needed to take action soon on Extending the lease. Seth arranged for a lease extension just ahead of time last March. Seth and the freeholder ultimately agreed on an amount of £5,000 . If the lease had dropped below 80 years, the sum would have escalated by at least £875.
Last month we were contacted by Mr and Mrs. A Collins , who moved into a ground floor flat in Ingatestone in September 2011. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Comparable premises in Ingatestone with a long lease were in the region of £183,600. The mid-range ground rent payable was £65 collected yearly. The lease elapsed on 4 February 2082. Given that there were 57 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including expenses.
Dr S Nguyen was assigned a lease of a ground floor apartment in Ingatestone in January 2007. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar residencies in Ingatestone with 100 year plus lease were valued around £245,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease lapsed in 2093. Taking into account 68 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.