Unfortunately that a Inkberrow 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 depreciation being disguised by increases in the Inkberrow property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be due. Most leasehold owners in Inkberrow will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly 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 in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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 also be not less than 75 years at the outset 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 |
Engaging our service will provide you enhanced control over the value of your Inkberrow leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Tommy was the the leasehold proprietor of a high value apartment in Inkberrow on the market with a lease of fraction over 72 years outstanding. Tommy on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Tommy to exercise his statutory right. Tommy procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last year we were approach by Mr and Mrs. K Bertrand , who owned a basement apartment in Inkberrow in February 2004. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable homes in Inkberrow with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 collected per annum. The lease terminated in 2082. Given that there were 57 years outstanding we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus expenses.
Mr and Mrs. U Turner acquired a first floor apartment in Inkberrow in August 1998. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative properties in Inkberrow with a long lease were worth £245,000. The mid-range ground rent payable was £45 collected monthly. The lease expired in 2093. Considering the 68 years unexpired we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.