As the length of the unexpired term of a Longbenton residential lease diminished so does its value and therefore the value of your property. Where the residual term has, over one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty 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 without delay. Most flat owners in Longbenton will qualify for this right; nevertheless a conveyancing solicitor can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Longbenton with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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; |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Longbenton,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 in-depth market knowledge and the close ties they enjoy with Longbenton valuers.
Half a year ago Caleb, came very close to the eighty-year mark with the lease on his ground floor flat in Longbenton. In buying his flat 19 years ago, the length of the lease was of little importance. Thankfully, he became aware that he needed to take action soon on Extending the lease. Caleb arranged for a lease extension just in the nick of time last March. Caleb and the freeholder via the managing agents subsequently settled on a premium of £5,000 . If he not met the deadline, the price would have increased by a minimum £925.
Mr Connor Taylor purchased a ground floor flat in Longbenton in February 2003. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Similar premises in Longbenton with a long lease were worth £275,000. The mid-range ground rent payable was £65 invoiced yearly. The lease terminated in 2093. Considering the 68 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.
Last Summer we were approach by Mr and Mrs. M Baker , who was assigned a lease of a one bedroom apartment in Longbenton in September 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Longbenton with an extended lease were valued around £208,600. The mid-range ground rent payable was £60 collected per annum. The lease elapsed on 21 February 2082. Given that there were 57 years remaining we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 plus expenses.