Unfortunately that a Ingatestone residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Ingatestone property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term drops below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Ingatestone will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. 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 formalities.
Leasehold premises in Ingatestone with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
The conveyancing solicitors 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 conveyancing solicitor we work with provide it.
Half a year ago Seth, came critically close to the eighty-year mark with the lease on his first floor flat in Ingatestone. Having purchased his property two decades ago, the length of the lease was of little bearing. Luckily, he realised he needed to take steps soon on Extending the lease. Seth extended the lease at the eleventh hour last April. Seth and the freeholder eventually settled on an amount of £6,000 . If the lease had descended to less than 80 years, the amount would have become more exhorbitant by a minimum £1,025.
Mr and Mrs. G Collins was assigned a lease of a one bedroom apartment in Ingatestone in November 2003. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Ingatestone with 100 year plus lease were worth £220,400. The average amount of ground rent was £45 billed per annum. The lease elapsed on 1 May 2090. Having 64 years remaining we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 not including professional charges.
In 2012 we were contacted by Mr Lewis Campbell who, having was assigned a lease of a recently refurbished flat in Ingatestone in May 2011. The question was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical homes in Ingatestone with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 invoiced per annum. The lease expiry date was on 16 March 2101. Given that there were 75 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.