As the the remaining lease term of a Ivybridge domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, beyond one hundred years to run then this decrease may be fractional that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Ivybridge will qualify for this right; however a conveyancing solicitor can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
The lawyers that we work with undertake Ivybridge 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.
Archie was the the leasehold owner of a 2 bedroom flat in Ivybridge being marketed with a lease of a little over sixty years outstanding. Archie on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Archie to exercise his statutory right. Archie procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Ms V Martin purchased a first floor apartment in Ivybridge in February 1996. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical homes in Ivybridge with a long lease were worth £196,400. The average ground rent payable was £55 collected yearly. The lease ran out in 2079. Taking into account 54 years remaining we approximated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 not including legals.
Last Christmas we were contacted by Mr and Mrs. H Ali , who purchased a ground floor flat in Ivybridge in April 2008. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Identical flats in Ivybridge with an extended lease were in the region of £295,000. The average ground rent payable was £45 invoiced per annum. The lease ran out on 10 September 2100. Having 75 years remaining we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.