There is no doubt about it a leasehold flat or house in Leyland is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. The majority of flat owners in Leyland will qualify for this right; nevertheless a lawyer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Chelsea 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. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Leyland leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Tommy, came seriously near to the 80-year mark with the lease on his two bedroom apartment in Leyland. Having bought his property twenty years ago, the length of the lease was of little concern. by good luck, he realised he would soon be paying an inflated amount for Extending the lease. Tommy was able to extend his lease at the eleventh hour in June. Tommy and the landlord who owned the flat above in the end settled on an amount of £6,000 . If he not met the deadline, the premium would have become more exhorbitant by a minimum £1,050.
Dr L Leroy was assigned a lease of a studio flat in Leyland in September 2012. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable properties in Leyland with a long lease were in the region of £210,000. The average amount of ground rent was £50 billed every twelve months. The lease ended in 2106. Considering the 80 years remaining we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.
Mr V Díaz bought a first floor apartment in Leyland in September 2009. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Leyland with an extended lease were in the region of £280,000. The average amount of ground rent was £45 billed per annum. The lease end date was in 2095. Given that there were 69 years remaining we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.