It’s an underpublicised truth that a Inkberrow residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Inkberrow property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term slips below 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. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Inkberrow will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold premises in Inkberrow with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
The lawyers that we work with procure Inkberrow 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.
Following unsuccessful discussions with the landlord of her one bedroom apartment in Inkberrow, Natalie initiated the lease extension process as the 80 year mark was rapidly nearing. The legal work was concluded in June 2014. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were e-mailed by Ms J Young who, having was assigned a lease of a basement apartment in Inkberrow in April 2007. The question was if we could estimate the price could be for a 90 year extension to my lease. Comparable residencies in Inkberrow with 100 year plus lease were valued about £255,000. The mid-range ground rent payable was £50 invoiced per annum. The lease lapsed on 17 May 2096. Considering the 70 years as a residual term we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
In 2012 we were contacted by Mr and Mrs. C Lefèvre who, having moved into a garden flat in Inkberrow in June 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparative residencies in Inkberrow with 100 year plus lease were valued about £246,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease finished on 17 February 2076. Considering the 50 years unexpired we estimated the premium to the landlord to extend the lease to be between £44,700 and £51,600 exclusive of professional charges.