There is no doubt about it a leasehold property in Ivybridge is a wasting asset as a result of the diminishing lease term. If the lease has, more than 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. Most flat owners in Ivybridge will qualify for this right; nevertheless a lawyer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire Building Society | 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. |
Retaining our service will provide you enhanced control over the value of your Ivybridge leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted discussions with the freeholder of her two bedroom flat in Ivybridge, Jodie started the lease extension process just as her lease was coming close to the critical 80-year mark. The lease extension was concluded in June 2015. The landlord’s costs were kept to an absolute minimum.
Last October we were called by Mr W Richardson , who took over the lease of a first floor apartment in Ivybridge in June 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Ivybridge with 100 year plus lease were in the region of £184,000. The average ground rent payable was £55 billed every twelve months. The lease expired in 2079. Given that there were 53 years remaining we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.
Last Christmas we were called by Mr and Mrs. A Taylor , who owned a basement apartment in Ivybridge in February 1998. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable flats in Ivybridge with a long lease were valued about £290,000. The average ground rent payable was £45 billed every twelve months. The lease ran out in 2099. Taking into account 73 years outstanding we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.