Leiston leases on domestic deteriorating in value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Leiston will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Leiston 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.
Two years ago Harvey, started to get close to the eighty-year mark with the lease on his leasehold apartment in Leiston. Having bought his property twenty years ago, the unexpired term was of minimal concern. Luckily, he recognised he would soon be paying an escalated premium for Extending the lease. Harvey was able to extend his lease just under the wire in June. Harvey and the landlord who owned the flat above in the end settled on the final figure of £6,000 . If the lease had descended lower than eighty years, the price would have become more exhorbitant by a minimum £975.
In 2013 we were approached by Mrs H Taylor who, having moved into a one bedroom flat in Leiston in April 1995. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical residencies in Leiston with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease finished in 2095. Given that there were 70 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
Last year we were called by Dr F Taylor , who purchased a studio flat in Leiston in February 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar properties in Leiston with a long lease were worth £246,800. The mid-range amount of ground rent was £60 collected per annum. The lease came to a finish in 2075. Taking into account 50 years outstanding we calculated the premium to the landlord for the lease extension to be between £44,700 and £51,600 plus professional charges.