Meopham leases on residential deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease dips below 80 years - otherwise a higher amount will be due. Flat owners in Meopham will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not be entitled. There are also strict deadlines and steps to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Meopham,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 Meopham valuers.
Last Winter Kyle, came very close to the 80-year threshold with the lease on his basement apartment in Meopham. In buying his property 18 years ago, the lease term was of minimal interest. Thankfully, he realised he needed to take steps soon on Extending the lease. Kyle was able to extend his lease just in the nick of time last May. Kyle and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If the lease had slid to less than 80 years, the figure would have become more costly by a minimum £1,125.
Last Summer we were approach by Mr and Mrs. L Clarke , who moved into a garden apartment in Meopham in October 2001. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Similar residencies in Meopham with a long lease were valued around £196,400. The mid-range ground rent payable was £55 collected annually. The lease finished in 2080. Given that there were 54 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £35,200 and £40,600 plus fees.
In 2010 we were phoned by Dr N Edwards who, having moved into a one bedroom flat in Meopham in February 1999. The question was if we could estimate the price would be for a ninety year extension to my lease. Similar homes in Meopham with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £45 collected annually. The lease elapsed on 12 March 2100. Considering the 74 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.