As the length of the unexpired term of a Martlesham Heath residential lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner rather than later. Many flat owners in Martlesham Heath will qualify for this right; that being said a lawyer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Martlesham Heath with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 conveyancing solicitors that we work with undertake Martlesham Heath 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 conveyancer we work with provide it.
In recent months Toby, started to get close to the 80-year mark with the lease on his one bedroom flat in Martlesham Heath. Having bought his home two decades ago, the lease term was of minimal relevance. Luckily, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Toby arranged for a lease extension just under the wire in January. Toby and the landlord in the end agreed on the final figure of £5,000 . If he had missed the deadline, the sum would have escalated by a minimum £1,050.
Mr and Mrs. D Dupont was assigned a lease of a one bedroom apartment in Martlesham Heath in June 1998. We are asked if we could approximate the premium could be to extend the lease by ninety years. Similar homes in Martlesham Heath with a long lease were worth £265,000. The mid-range amount of ground rent was £50 billed annually. The lease expired in 2098. Taking into account 73 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
In 2014 we were called by Mrs W Nelson who, having moved into a one bedroom apartment in Martlesham Heath in November 1996. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Identical properties in Martlesham Heath with 100 year plus lease were worth £264,000. The average ground rent payable was £60 invoiced every twelve months. The lease lapsed on 5 January 2078. Given that there were 53 years remaining we approximated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of professional charges.