As the the remaining lease term of a Long Melford domestic lease decreases so does its value and therefore the value of your property. Where the lease has, over one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Long Melford will meet the qualifying criteria; that being said a conveyancer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent 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 same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Using our service will provide you better control over the value of your Long Melford leasehold, as your property will be more valuable and marketable in terms 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.
In 2014 Tyler, came critically close to the eighty-year threshold with the lease on his ground floor apartment in Long Melford. In buying his property two decades ago, the length of the lease was of little significance. As luck would have it, he recognised he would imminently be paying an escalated premium for Extending the lease. Tyler extended the lease at the eleventh hour last June. Tyler and the landlord subsequently agreed on sum of £5,000 . If the lease had fallen below eighty years, the sum would have escalated by a minimum £1,100.
Mr and Mrs. M Miller took over the lease of a basement flat in Long Melford in August 2004. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar properties in Long Melford with 100 year plus lease were worth £208,200. The mid-range ground rent payable was £65 invoiced yearly. The lease finished in 2087. Taking into account 61 years unexpired we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including professional charges.
Dr E Brooks was assigned a lease of a ground floor flat in Long Melford in September 1995. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical residencies in Long Melford with a long lease were valued about £260,000. The average amount of ground rent was £50 collected quarterly. The lease ran out in 2098. Considering the 72 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.