Lound leases on domestic deteriorating in value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have 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 to the property. Flat owners in Lound will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some cases you may not be entitled. There are prescribed deadlines and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Lound with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Lound,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lound valuers.
Off the back of unsuccessful negotiations with the landlord of her ground floor apartment in Lound, Amber started the lease extension process just as the lease was approaching the crucial 80-year mark. The transaction was concluded in April 2007. The freeholder’s charges were restricted to approximately 450 GBP.
Dr Cameron Gray bought a purpose-built flat in Lound in July 2010. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable residencies in Lound with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ended in 2102. Given that there were 77 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.
In 2011 we were approached by Dr W Campbell who, having was assigned a lease of a newly refurbished apartment in Lound in November 1998. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable homes in Lound with a long lease were valued about £183,600. The average ground rent payable was £65 collected yearly. The lease elapsed on 25 November 2082. Considering the 57 years remaining we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including professional charges.