The closer a residential lease in Maxton gets to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Maxton will meet the qualifying criteria; however a lawyer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Maxton with over one hundred 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| 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 Maxton 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.
Two years ago Jude, started to get near to the 80-year threshold with the lease on his first floor apartment in Maxton. In buying his flat two decades ago, the lease term was of minimal importance. by good luck, he realised he would imminently be paying way over the odds for a lease extension. Jude arranged for a lease extension just ahead of time in March. Jude and the freeholder in the end agreed on an amount of £5,000 . If the lease had slid below 80 years, the price would have gone up by at least £975.
In 2010 we were contacted by Ms V Phillips who, having acquired a recently refurbished apartment in Maxton in September 1999. The question was if we could approximate the premium could be to extend the lease by ninety years. Identical residencies in Maxton with 100 year plus lease were worth £270,000. The average ground rent payable was £55 collected annually. The lease terminated on 19 February 2100. Considering the 74 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
Last Christmas we were approach by Dr G Dupont , who purchased a basement flat in Maxton in November 2010. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable homes in Maxton with 100 year plus lease were worth £166,400. The average amount of ground rent was £60 collected per annum. The lease finished on 13 November 2080. Taking into account 54 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including costs.