With a residential leasehold property in Long Hanborough, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Anyone in Long Hanborough with a lease drawing near to 81 years unexpired should seriously consider extending it sooner as opposed to later. Once a lease has under 80 years remaining, under the relevant Act the landlord is entitled to calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service gives you better control over the value of your Long Hanborough leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Joshua, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Long Hanborough. Having bought his home 18 years previously, the lease term was of little significance. by good luck, he noticed he needed to take steps soon on Extending the lease. Joshua extended the lease just in the nick of time in March. Joshua and the landlord who owned the flat above eventually agreed on an amount of £5,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by at least £1,050.
Mr Logan Mitchell was assigned a lease of a purpose-built apartment in Long Hanborough in June 2006. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparable homes in Long Hanborough with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 billed monthly. The lease ran out on 7 September 2104. Considering the 78 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.
Last month we were e-mailed by Mr Y Thompson , who purchased a one bedroom flat in Long Hanborough in February 1999. We are asked if we could estimate the premium would be to extend the lease by ninety years. Identical flats in Long Hanborough with 100 year plus lease were valued around £267,600. The average ground rent payable was £65 collected quarterly. The lease terminated in 2093. Having 67 years unexpired we estimated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of professional charges.