The closer a domestic lease in Low Moor gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years left 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 primary reason why you should extend the lease 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 certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Low Moor lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Oscar was the the leasehold owner of a conversion flat in Low Moor on the market with a lease of a few days over 61 years remaining. Oscar on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. 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 £100 yearly. No ground rent would be due on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Mr A Evans purchased a recently refurbished apartment in Low Moor in November 2000. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Similar flats in Low Moor with a long lease were worth £189,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease finished in 2078. Considering the 53 years as a residual term we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including legals.
In 2014 we were contacted by Mr and Mrs. H Patel who, having moved into a basement flat in Low Moor in November 2000. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical residencies in Low Moor with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease ended in 2098. Considering the 73 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.