The nearer a domestic lease in Mulbarton nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Mulbarton will qualify for this right; that being said a conveyancer will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with handle Mulbarton 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 conveyancer we work with provide it.
Subsequent to protracted discussions with the landlord of her ground floor flat in Mulbarton, Natalie initiated the lease extension process as the 80 year threshold was swiftly approaching. The transaction was concluded in July 2008. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were contacted by Mr Leo Ricardo who, having took over the lease of a first floor apartment in Mulbarton in April 2003. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar properties in Mulbarton with an extended lease were in the region of £250,000. The average amount of ground rent was £50 collected yearly. The lease end date was in 2094. Taking into account 69 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
Mr and Mrs. H André was assigned a lease of a recently refurbished apartment in Mulbarton in April 2009. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Identical homes in Mulbarton with a long lease were valued around £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease expired in 2105. Having 80 years left we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.