Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Market Drayton. Clearly, the period of lease remaining shortens over time. This may pass by relatively unnoticed when the flat or house needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Market Drayton have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give due deliberation before delaying your Market Drayton lease extension. Holding off that expense now simply increases the price you will ultimately incur to extend your lease
Leasehold residencies in Market Drayton with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Market Drayton can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Market Drayton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of unsuccessful correspondence with the landlord of her one bedroom flat in Market Drayton, Alisha started the lease extension process as the eighty year threshold was rapidly coming. The lease extension was finalised in January 2012. The landlord’s costs were kept to an absolute minimum.
Last January we were e-mailed by Dr Sam Baker , who bought a one bedroom flat in Market Drayton in October 1999. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Comparable residencies in Market Drayton with a long lease were valued about £181,600. The mid-range amount of ground rent was £55 invoiced per annum. The lease concluded in 2078. Given that there were 52 years unexpired we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus costs.
Dr K Clark was assigned a lease of a one bedroom apartment in Market Drayton in October 1996. The question was if we could estimate the price could be to prolong the lease by an additional years. Comparable residencies in Market Drayton with a long lease were valued around £290,000. The average ground rent payable was £45 invoiced per annum. The lease finished in 2098. Taking into account 72 years remaining we estimated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 not including legals.