It’s a harsh certainty that a Montacute residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Montacute property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of 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 Montacute will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Montacute with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Santander | |
| Virgin |
Lease extensions in Montacute can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Montacute lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the freeholder of her garden flat in Montacute, Paige commenced the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The transaction was concluded in November 2009. The landlord’s charges were restricted to below 500 GBP.
Mr and Mrs. F Clark completed a studio apartment in Montacute in November 1999. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparative homes in Montacute with an extended lease were in the region of £295,000. The average ground rent payable was £45 invoiced every twelve months. The lease concluded in 2100. Taking into account 74 years left we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.
Ms S Cooper acquired a one bedroom flat in Montacute in January 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Identical properties in Montacute with an extended lease were in the region of £243,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease terminated in 2089. Given that there were 63 years unexpired we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of fees.