As the length of the unexpired term of a Madeley residential lease lessens so does its value and therefore the value of your property. If the lease has, over 99 years to run then this decrease may be fractional however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner as opposed to later. The majority of flat owners in Madeley will meet the qualifying criteria; nevertheless a conveyancer will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
The lawyers that we work with procure Madeley 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 lawyer we work with provide it.
Subsequent to unsuccessful negotiations with the landlord of her studio apartment in Madeley, Lauren started the lease extension process just as her lease was coming close to the critical eighty-year deadline. The transaction was finalised in July 2006. The freeholder’s costs were restricted to a tad over six hundred pounds.
In 2014 we were e-mailed by Mr and Mrs. I Allen who, having bought a studio flat in Madeley in May 2004. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Madeley with 100 year plus lease were worth £257,800. The average ground rent payable was £65 billed yearly. The lease concluded in 2091. Taking into account 65 years remaining we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 plus professional charges.
In 2011 we were e-mailed by Dr Ben Anderson who, having purchased a ground floor flat in Madeley in June 2001. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Identical residencies in Madeley with a long lease were valued around £191,400. The average ground rent payable was £55 collected quarterly. The lease finished on 23 August 2080. Considering the 54 years remaining we calculated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 not including professional charges.