When it comes to domestic leasehold property in Lapworth, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than eighty years remaining. Residents in Lapworth with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. When a lease has under eighty years left, under the relevant Act the freeholder is entitled to calculate and charge a larger premium, based on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Engaging our service gives you better control over the value of your Lapworth leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Felix owned a studio apartment in Lapworth being marketed with a lease of just over 59 years unexpired. Felix informally contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Felix to exercise his statutory right. Felix obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
Last Winter we were approach by Dr Ethan Wilson , who took over the lease of a garden flat in Lapworth in January 2005. The question was if we could approximate the premium could be for a 90 year lease extension. Identical residencies in Lapworth with a long lease were in the region of £210,600. The mid-range ground rent payable was £45 collected monthly. The lease lapsed on 16 March 2087. Having 62 years unexpired we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus costs.
Last May we were e-mailed by Dr Maisie Taylor , who was assigned a lease of a ground floor flat in Lapworth in November 2005. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative flats in Lapworth with a long lease were worth £265,000. The average amount of ground rent was £50 invoiced annually. The lease concluded on 14 August 2098. Considering the 73 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.