The nearer a domestic lease in Leiston nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 125 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner rather than later. Most flat owners in Leiston will meet the qualifying criteria; however a conveyancing solicitor can advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Leiston,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Leiston valuers.
Off the back of unsuccessful correspondence with the landlord of her first floor flat in Leiston, Imogen started the lease extension process as the 80 year mark was rapidly coming. The legal work completed in March 2012. The landlord’s costs were kept to an absolute minimum.
In 2012 we were contacted by Mr and Mrs. S Patel who, having acquired a basement apartment in Leiston in July 2009. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparative homes in Leiston with a long lease were in the region of £265,000. The average ground rent payable was £50 invoiced yearly. The lease end date was in 2099. Given that there were 73 years outstanding we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Last Spring we were phoned by Mr and Mrs. G Vincent , who acquired a recently refurbished flat in Leiston in April 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Leiston with 100 year plus lease were worth £264,000. The mid-range amount of ground rent was £60 collected yearly. The lease elapsed on 15 November 2079. Having 53 years remaining we estimated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus fees.