Montgomery leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Montgomery enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Montgomery you should check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Montgomery with in excess of 100 years left on the lease are sometimes referred to as ‘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 to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Montgomery can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in this area.
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 Montgomery lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Michael, started to get near to the eighty-year threshold with the lease on his ground floor flat in Montgomery. Having purchased his home 19 years previously, the lease term was of minimal interest. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Michael extended the lease just under the wire in August. Michael and the landlord in the end agreed on an amount of £6,000 . If the lease had fallen lower than eighty years, the figure would have increased by a minimum £850.
In 2014 we were approached by Mr and Mrs. K Roux who, having purchased a ground floor flat in Montgomery in January 1997. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar homes in Montgomery with an extended lease were in the region of £246,800. The average ground rent payable was £60 billed per annum. The lease finished in 2075. Given that there were 50 years remaining we approximated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 not including costs.
Mr and Mrs. B Anderson was assigned a lease of a one bedroom apartment in Montgomery in July 2012. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar properties in Montgomery with a long lease were worth £203,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease termination date was in 2086. Having 61 years remaining we estimated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus expenses.