The closer a residential lease in Leek nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner as opposed to later. Most flat owners in Leek will meet the qualifying criteria; however a lawyer should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Leek with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Leek,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Leek valuers.
Trailing unsuccessful correspondence with the freeholder of her purpose-built apartment in Leek, Freya started the lease extension process as the 80 year mark was swiftly approaching. The legal work was concluded in August 2014. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were contacted by Mr Alfie Bailey , who owned a recently refurbished apartment in Leek in November 2007. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Identical premises in Leek with an extended lease were worth £225,400. The mid-range amount of ground rent was £45 invoiced quarterly. The lease terminated on 9 September 2090. Taking into account 64 years as a residual term we estimated the premium to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of costs.
Mr and Mrs. O Ramírez bought a studio apartment in Leek in January 2010. The question was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Identical properties in Leek with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected monthly. The lease ended on 1 June 2101. Taking into account 75 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.