For anyone whose Market Deeping home is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Market Deeping can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 dealing with Market Deeping lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Arthur, started to get close to the eighty-year mark with the lease on his purpose- built flat in Market Deeping. Having purchased his flat two decades ago, the unexpired term was of minimal significance. Luckily, he realised he needed to take action soon on Extending the lease. Arthur arranged for a lease extension just ahead of time last May. Arthur and the freeholder eventually settled on the final figure of £6,000 . If the lease had slipped to less than 80 years, the figure would have become more costly by at least £950.
Last November we were called by Dr S Petit , who took over the lease of a ground floor flat in Market Deeping in March 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparable premises in Market Deeping with 100 year plus lease were valued about £267,600. The average ground rent payable was £65 invoiced quarterly. The lease ran out in 2092. Considering the 67 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 plus expenses.
Last month we were called by Dr Alisha James , who bought a garden apartment in Market Deeping in February 2009. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Market Deeping with 100 year plus lease were worth £206,200. The average amount of ground rent was £60 collected per annum. The lease came to a finish on 21 July 2081. Having 56 years outstanding we estimated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of costs.