Unfortunately that a Long Melford residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Long Melford property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term slips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Long Melford will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Long Melford can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Long Melford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Thomas was the the leasehold owner of a 2 bedroom apartment in Long Melford being sold with a lease of a little over fifty eight years outstanding. Thomas informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Thomas to invoke his statutory right. Thomas procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Mr and Mrs. K Fournier moved into a one bedroom apartment in Long Melford in April 2009. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparative flats in Long Melford with an extended lease were in the region of £255,000. The average ground rent payable was £50 invoiced quarterly. The lease came to a finish in 2095. Having 70 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 exclusive of legals.
Ms F Sánchez purchased a garden flat in Long Melford in July 2012. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparative flats in Long Melford with a long lease were worth £246,800. The average ground rent payable was £60 collected every twelve months. The lease lapsed on 23 June 2075. Given that there were 50 years outstanding we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 plus professional charges.