Lower Earley leases on domestic deteriorating in value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard 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. Leasehold owners in Lower Earley will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Lower Earley with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with handle Lower Earley 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.
In the wake of 6 months of protracted correspondence with the landlord of her one bedroom flat in Lower Earley, Morgan commenced the lease extension process as the 80 year deadline was swiftly advancing. The transaction was finalised in February 2010. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. N Richardson was assigned a lease of a one bedroom flat in Lower Earley in February 2003. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparable flats in Lower Earley with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease concluded on 1 March 2098. Taking into account 72 years unexpired we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus professional charges.
Mr V Bennett completed a garden apartment in Lower Earley in October 2003. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparative residencies in Lower Earley with an extended lease were valued about £233,200. The mid-range ground rent payable was £60 collected monthly. The lease concluded on 24 September 2087. Taking into account 61 years left we calculated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 exclusive of fees.