When it comes to domestic leasehold property in Market Rasen, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are less than eighty years left. Leasehold owners in Market Rasen with a lease nearing 81 years left should seriously consider extending it without delay. Once the lease term has below eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Market Rasen with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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. |
The lawyers that we work with procure Market Rasen 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 conveyancing solicitor we work with provide it.
In 2014 Stanley, started to get near to the 80-year mark with the lease on his one bedroom apartment in Market Rasen. In buying his property 19 years previously, the unexpired term was of little relevance. Thankfully, he realised he needed to take action soon on a lease extension. Stanley arranged for a lease extension just under the wire last June. Stanley and the landlord ultimately agreed on an amount of £5,000 . If the lease had fallen below eighty years, the figure would have gone up by at least £1,100.
Mrs Grace Cook owned a studio apartment in Market Rasen in October 2006. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Similar residencies in Market Rasen with an extended lease were valued about £270,000. The mid-range ground rent payable was £55 billed quarterly. The lease finished on 22 July 2100. Given that there were 75 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Dr Catherine Watson acquired a first floor apartment in Market Rasen in November 2002. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparable residencies in Market Rasen with 100 year plus lease were worth £168,800. The average amount of ground rent was £60 billed annually. The lease elapsed on 17 June 2080. Taking into account 55 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including professional charges.