As the length of the unexpired term of a Lytchett Matravers residential lease diminished so does its value and therefore the value of your property. Where the residual term has, over one hundred years remaining then this decrease may be fractional however there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in Lytchett Matravers will qualify for this right; that being said a lawyer should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Lytchett Matravers with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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; |
| 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. |
| Lloyds TSB Scotland | 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. |
| 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 |
Engaging our service gives you increased control over the value of your Lytchett Matravers leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ethan owned a conversion flat in Lytchett Matravers being sold with a lease of just over 72 years left. Ethan informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Ethan to invoke his statutory right. Ethan procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Mrs Eleanor Hall bought a newly refurbished flat in Lytchett Matravers in November 2009. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparative flats in Lytchett Matravers with an extended lease were valued about £264,000. The average ground rent payable was £60 collected monthly. The lease came to a finish in 2079. Having 53 years outstanding we calculated the premium to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of professional charges.
Mr Aiden Torres moved into a basement apartment in Lytchett Matravers in October 2000. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical homes in Lytchett Matravers with 100 year plus lease were worth £225,400. The average amount of ground rent was £45 billed yearly. The lease elapsed on 17 April 2090. Considering the 64 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 plus legals.