The closer a residential lease in Montgomery nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 99 years to run then this decrease may be of little impact however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Montgomery will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Montgomery lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of lengthy discussions with the freeholder of her first floor apartment in Montgomery, Isabella started the lease extension process as the 80 year mark was fast nearing. The lease extension was concluded in June 2011. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. I Hall acquired a purpose-built flat in Montgomery in July 2001. The question was if we could estimate the price would be to extend the lease by an additional years. Identical homes in Montgomery with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 billed per annum. The lease finished in 2094. Having 69 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Mr and Mrs. R Díaz took over the lease of a garden apartment in Montgomery in August 1996. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical flats in Montgomery with a long lease were valued around £285,000. The mid-range ground rent payable was £55 billed every twelve months. The lease ended in 2105. Taking into account 80 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.