With a domestic leasehold property in Paddock Wood, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years left. Residents in Paddock Wood with a lease drawing near to 81 years left should seriously consider extending it without delay. Once a lease has under 80 years left, under the relevant legislation the landlord can calculate and demand a greater amount, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Paddock Wood,the lease extension experts that we work with will always be happy 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.
During the course of the last few months Milo, came precariously close to the 80-year threshold with the lease on his basement flat in Paddock Wood. Having bought his home two decades ago, the length of the lease was of little concern. by good luck, he became aware that he would imminently be paying an inflated amount for a lease extension. Milo was able to extend his lease just in the nick of time last June. Milo and the landlord subsequently settled on an amount of £5,000 . If he not met the deadline, the figure would have increased by at least £1,000.
Mr and Mrs. J Adams completed a first floor apartment in Paddock Wood in November 2000. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical residencies in Paddock Wood with a long lease were valued about £264,000. The mid-range amount of ground rent was £60 invoiced per annum. The lease expiry date was in 2079. Given that there were 53 years remaining we estimated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 plus costs.
Last Spring we were approach by Dr Kyle Carter , who was assigned a lease of a first floor apartment in Paddock Wood in November 1995. We are asked if we could approximate the price could be for a ninety year lease extension. Identical flats in Paddock Wood with 100 year plus lease were worth £225,400. The mid-range amount of ground rent was £45 billed yearly. The lease lapsed in 2090. Having 64 years remaining we estimated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 plus professional charges.