There is no doubt about it a leasehold flat or house in Iver is a wasting asset as a result of the diminishing lease term. If the lease has, beyond one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease without delay. Most flat owners in Iver will qualify for this right; nevertheless a conveyancer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| 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 procure Iver 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.
Two years ago Finley, came precariously near to the eighty-year mark with the lease on his two bedroom apartment in Iver. Having purchased his property twenty years ago, the lease term was of no relevance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Finley was able to extend his lease just under the wire in June. Finley and the freeholder via the managing agents eventually agreed on the final figure of £5,500 . If he not met the deadline, the price would have become more exhorbitant by a minimum £875.
In 2010 we were called by Mr and Mrs. D Hall who, having owned a basement flat in Iver in June 1995. The dilemma was if we could approximate the price would be to extend the lease by ninety years. Similar homes in Iver with a long lease were worth £260,000. The average amount of ground rent was £50 billed per annum. The lease ended in 2098. Given that there were 73 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.
An example of a Freehold Enfranchisement case for a Iver property is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case was in relation to 2 flats. The remaining number of years on the lease was 69 years.