When it comes to long leasehold property in Ingatestone, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Leasehold owners in Ingatestone with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once the lease term has under 80 years outstanding, under the relevant legislation the freeholder can calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Ingatestone,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ingatestone valuers.
Last year Callum, came very close to the eighty-year threshold with the lease on his first floor flat in Ingatestone. In buying his property 19 years previously, the unexpired term was of minimal interest. by good luck, it dawned on him that he needed to take action soon on a lease extension. Callum extended the lease at the eleventh hour last June. Callum and the landlord subsequently agreed on the final figure of £6,000 . If he failed to meet the deadline, the figure would have increased by at least £1,000.
Last Autumn we were phoned by Mr and Mrs. Y Mason , who was assigned a lease of a one bedroom apartment in Ingatestone in April 1996. The question was if we could approximate the price would be for a ninety year extension to my lease. Similar flats in Ingatestone with 100 year plus lease were worth £256,600. The mid-range ground rent payable was £60 billed per annum. The lease lapsed in 2078. Considering the 52 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £41,800 and £48,400 plus fees.
Mr and Mrs. V Watson took over the lease of a one bedroom flat in Ingatestone in June 1996. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparable residencies in Ingatestone with 100 year plus lease were in the region of £218,000. The mid-range ground rent payable was £45 billed yearly. The lease finished in 2089. Having 63 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 not including legals.