There is no doubt about it a leasehold property in Lee On The Solent is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of 125 years remaining then this decrease may be negligible however there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Lee On The Solent will qualify for this right; nevertheless a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under 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 30 years unexpired, the residence 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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 conveyancing solicitors that we work with handle Lee On The Solent 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 conveyancer we work with provide it.
Last year Jude, started to get close to the eighty-year mark with the lease on his leasehold flat in Lee On The Solent. Having bought his property two decades ago, the length of the lease was of minimal interest. As luck would have it, he realised he would soon be paying an inflated amount for a lease extension. Jude arranged for a lease extension just in the nick of time last June. Jude and the freeholder eventually settled on sum of £6,000 . If the lease had slid to less than 80 years, the sum would have gone up by a minimum £950.
Last Summer we were called by Ms Alexandra Thompson , who purchased a one bedroom apartment in Lee On The Solent in November 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar homes in Lee On The Solent with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ended on 2 November 2105. Taking into account 79 years outstanding we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.
In 2010 we were contacted by Mr and Mrs. L Mason who, having completed a newly refurbished apartment in Lee On The Solent in September 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Identical premises in Lee On The Solent with an extended lease were in the region of £193,400. The mid-range amount of ground rent was £65 billed monthly. The lease lapsed on 19 July 2085. Considering the 59 years remaining we calculated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including legals.