There is no doubt about it a leasehold property in New Farnley is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 100 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Many flat owners in New Farnley will qualify for this right; nevertheless a conveyancer should be able to advise whether you are eligible for a lease extension. 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 conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure New Farnley 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 lawyer we work with provide it.
In the wake of 9 months of lengthy negotiations with the landlord of her two bedroom flat in New Farnley, Eleanor initiated the lease extension process just as the lease was nearing the critical eighty-year deadline. The lease extension was concluded in September 2005. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were contacted by Mr and Mrs. F Ali who, having completed a garden flat in New Farnley in January 2009. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Similar properties in New Farnley with a long lease were worth £261,600. The mid-range ground rent payable was £60 collected monthly. The lease came to a finish in 2077. Taking into account 52 years left we estimated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 plus professional charges.
Last year we were e-mailed by Mrs Y Kelly , who purchased a garden flat in New Farnley in July 1998. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in New Farnley with a long lease were worth £218,000. The average amount of ground rent was £45 billed every twelve months. The lease terminated in 2088. Considering the 63 years outstanding we estimated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of costs.