As the length of the unexpired term of a Low Moor domestic lease diminished so does its value and therefore the value of your property. If the lease has, more than 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner as opposed to later. Many flat owners in Low Moor will qualify for this right; nevertheless a conveyancer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common 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 further 90 years added to any lease with more than 35 years unexpired, the property 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; |
| Birmingham Midshires | 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. |
| 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. |
Lease extensions in Low Moor can be a difficult process. We recommend you obtain guidance from a conveyancer 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 dealing with Low Moor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Stanley owned a conversion apartment in Low Moor being marketed with a lease of a few days over 59 years remaining. Stanley informally approached his landlord being 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 on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Stanley to exercise his statutory right. Stanley obtained expert advice and secured satisfactory resolution informally and readily saleable.
In 2014 we were contacted by Mr and Mrs. J Rivera who, having acquired a ground floor apartment in Low Moor in May 1998. The dilemma was if we could estimate the premium would likely be to prolong the lease by 90 years. Identical residencies in Low Moor with a long lease were valued around £225,800. The average ground rent payable was £60 invoiced every twelve months. The lease came to a finish on 25 September 2085. Taking into account 60 years outstanding we estimated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 not including professional charges.
Mr Hunter François took over the lease of a recently refurbished flat in Low Moor in June 2004. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparative residencies in Low Moor with a long lease were worth £210,000. The average amount of ground rent was £50 invoiced monthly. The lease elapsed on 18 April 2105. Given that there were 80 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus costs.