The closer a residential lease in Lake nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 99 years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Lake will meet the qualifying criteria; however a conveyancing solicitor should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Lake,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lake valuers.
Teddy was the the leasehold owner of a 2 bedroom flat in Lake on the market with a lease of a little over sixty years unexpired. Teddy informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Teddy to exercise his statutory right. Teddy obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
In 2011 we were called by Mr and Mrs. T Lefèvre who, having acquired a garden apartment in Lake in March 1998. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar residencies in Lake with 100 year plus lease were worth £233,200. The average amount of ground rent was £60 collected quarterly. The lease came to a finish on 18 November 2086. Having 61 years left we estimated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 exclusive of fees.
In 2013 we were approached by Dr George Walker who, having purchased a studio apartment in Lake in February 2012. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Lake with a long lease were in the region of £166,800. The mid-range ground rent payable was £50 collected every twelve months. The lease lapsed in 2075. Taking into account 50 years left we estimated the premium to the landlord to extend the lease to be between £32,300 and £37,400 plus fees.