Unfortunately that a Paddock Wood residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Paddock Wood property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining dips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Paddock Wood will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
Leasehold residencies in Paddock Wood with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Paddock Wood,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Paddock Wood valuers.
In the wake of 9 months of lengthy discussions with the freeholder of her ground floor apartment in Paddock Wood, Kelsey started the lease extension process just as her lease was coming close to the crucial 80-year mark. The lease extension completed in November 2014. The landlord’s costs were kept to an absolute minimum.
Ms C Norbert owned a one bedroom flat in Paddock Wood in August 1997. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative premises in Paddock Wood with 100 year plus lease were worth £191,000. The average amount of ground rent was £65 invoiced quarterly. The lease expired on 27 January 2083. Considering the 58 years remaining we approximated the premium to the landlord to extend the lease to be between £23,800 and £27,400 not including legals.
In 2012 we were called by Mr and Mrs. Y Anderson who, having was assigned a lease of a one bedroom flat in Paddock Wood in June 2007. The dilemma was if we could approximate the price would be to prolong the lease by 90 years. Comparative homes in Paddock Wood with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 billed yearly. The lease expiry date was in 2094. Taking into account 69 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.