The closer a residential lease in Middleton St George gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 100 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer 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 main reason why you should extend the lease sooner than later. Many flat owners in Middleton St George will meet the qualifying criteria; however a conveyancing solicitor can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Middleton St George with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Regardless of whether you are a tenant or a landlord in Middleton St George,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Middleton St George valuers.
During the course of the last few months Jackson, came dangerously near to the eighty-year threshold with the lease on his leasehold flat in Middleton St George. Having bought his home 19 years ago, the lease term was of little concern. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Jackson arranged for a lease extension just under the wire last March. Jackson and the landlord who owned the flat above eventually settled on a premium of £5,000 . If he not met the deadline, the premium would have escalated by a minimum £1,075.
Mr Reuben Collins owned a purpose-built apartment in Middleton St George in September 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar properties in Middleton St George with an extended lease were in the region of £265,000. The average ground rent payable was £50 invoiced per annum. The lease ran out on 15 June 2100. Taking into account 74 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.
Last July we were e-mailed by Dr Kian González , who took over the lease of a one bedroom flat in Middleton St George in April 2007. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Middleton St George with 100 year plus lease were valued about £166,400. The average amount of ground rent was £60 invoiced annually. The lease lapsed on 26 September 2080. Having 54 years unexpired we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus expenses.