Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Market Drayton. Clearly, the period of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Market Drayton have the legal entitlement to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. You should give due attention before putting off your Market Drayton lease extension. Putting off that expense now simply increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Market Drayton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Market Drayton valuers.
18 months ago Harrison, came perilously near to the eighty-year mark with the lease on his purpose- built flat in Market Drayton. Having purchased his property two decades ago, the length of the lease was of little relevance. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. Harrison arranged for a lease extension just under the wire in January. Harrison and the landlord subsequently agreed on sum of £6,000 . If he not met the deadline, the price would have escalated by a minimum £1,000.
Ms Jordan Peterson owned a ground floor apartment in Market Drayton in November 2012. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparative properties in Market Drayton with an extended lease were in the region of £171,800. The mid-range amount of ground rent was £55 invoiced monthly. The lease lapsed on 8 July 2075. Taking into account 50 years remaining we approximated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 not including legals.
Mrs Jessica Ricardo owned a one bedroom flat in Market Drayton in March 2001. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparative flats in Market Drayton with a long lease were in the region of £280,000. The average ground rent payable was £45 collected per annum. The lease lapsed in 2095. Taking into account 70 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.