The nearer a residential lease in Minera gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 125 years to run then this decrease may be negligible that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. The majority of flat owners in Minera will meet the qualifying criteria; however a lawyer should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Retaining our service will provide you enhanced control over the value of your Minera leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the freeholder of her purpose-built apartment in Minera, Emma started the lease extension process as the 80 year threshold was fast advancing. The transaction was finalised in September 2013. The landlord’s fees were kept to an absolute minimum.
In 2009 we were phoned by Dr B Wilson who, having took over the lease of a garden apartment in Minera in August 1998. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Identical premises in Minera with an extended lease were valued about £280,000. The average amount of ground rent was £55 billed per annum. The lease ended in 2103. Given that there were 78 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.
Dr C Williams moved into a first floor flat in Minera in July 2002. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical flats in Minera with 100 year plus lease were valued about £191,000. The mid-range ground rent payable was £65 collected yearly. The lease came to a finish in 2083. Taking into account 58 years outstanding we calculated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 not including expenses.