Lower Earley leases on residential deteriorating in value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Lower Earley will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some cases you may not qualify. There are also strict deadlines and formalities to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The conveyancers that we work with undertake 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 9 months of lengthy negotiations with the landlord of her basement apartment in Lower Earley, Amber commenced the lease extension process as the 80 year mark was fast nearing. The legal work completed in February 2012. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were e-mailed by Dr E Ramírez who, having purchased a first floor apartment in Lower Earley in February 2001. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Similar flats in Lower Earley with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £45 collected annually. The lease lapsed in 2096. Taking into account 70 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.
Mr F Flores acquired a studio apartment in Lower Earley in January 2011. We are asked if we could estimate the price could be for a 90 year extension to my lease. Similar residencies in Lower Earley with 100 year plus lease were in the region of £223,400. The mid-range ground rent payable was £60 billed per annum. The lease ran out on 25 February 2085. Having 59 years left we calculated the premium to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of costs.