Unfortunately that a Middleton St George residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Middleton St George property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term slips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Middleton St George will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold properties in Middleton St George with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 |
Using our service gives you better control over the value of your Middleton St George leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy negotiations with the landlord of her leasehold apartment in Middleton St George, Bethany commenced the lease extension process as the 80 year mark was swiftly nearing. The transaction was finalised in November 2013. The freeholder’s fees were restricted to slightly above 600 GBP.
Last month we were approach by Dr L Green , who moved into a one bedroom apartment in Middleton St George in September 2002. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative residencies in Middleton St George with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected monthly. The lease came to a finish in 2105. Considering the 79 years outstanding we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of costs.
Last month we were called by Dr P Nelson , who owned a purpose-built flat in Middleton St George in October 2001. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparative premises in Middleton St George with an extended lease were valued about £193,400. The mid-range ground rent payable was £65 billed annually. The lease terminated in 2085. Considering the 59 years unexpired we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including fees.