When it comes to domestic leasehold property in Lower Earley, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Residents in Lower Earley with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once the lease term has less than 80 years remaining, under the relevant Act the freeholder is entitled to calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | 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. |
Lease extensions in Lower Earley can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 a wealth of experience procuring Lower Earley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Owen owned a studio flat in Lower Earley being sold with a lease of a little over 61 years unexpired. Owen on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Owen to invoke his statutory right. Owen obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Autumn we were e-mailed by Dr Eli Lewis , who moved into a ground floor flat in Lower Earley in October 2009. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical premises in Lower Earley with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected monthly. The lease lapsed in 2100. Given that there were 75 years unexpired we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.
Mr and Mrs. A Mason moved into a basement apartment in Lower Earley in November 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Lower Earley with a long lease were in the region of £250,400. The average ground rent payable was £65 invoiced quarterly. The lease concluded on 18 November 2089. Considering the 64 years outstanding we approximated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 plus fees.