It’s a harsh truth that a Irby residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Irby property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining drops below eighty 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 extra value that a lease extension will add the property The majority of leasehold owners in Irby 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 deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Irby with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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 estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Irby 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.
Lucas was the the leasehold proprietor of a high value flat in Irby on the market with a lease of a little over fifty eight years remaining. Lucas informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Lucas to invoke his statutory right. Lucas obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Mr R James bought a ground floor apartment in Irby in March 2003. The question was if we could approximate the price could be to prolong the lease by a further 90 years. Comparative properties in Irby with an extended lease were valued about £184,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ended on 25 September 2078. Considering the 53 years unexpired we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus fees.
In 2013 we were approached by Dr Benjamin Díaz who, having moved into a one bedroom apartment in Irby in February 1995. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparable residencies in Irby with a long lease were valued about £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease terminated in 2098. Given that there were 73 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.