It’s a harsh truth that a Partington residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Partington property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term dips under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Partington will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Using our service will provide you better control over the value of your Partington leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the freeholder of her first floor flat in Partington, Freya commenced the lease extension process as the eighty year mark was quickly approaching. The transaction was concluded in April 2007. The landlord’s fees were negotiated to below 450 pounds.
Mrs Naomi Murphy acquired a basement apartment in Partington in August 1998. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Partington with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 invoiced quarterly. The lease expiry date was in 2095. Considering the 70 years left we calculated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 not including costs.
Mr and Mrs. J Roux acquired a basement flat in Partington in May 2003. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable premises in Partington with a long lease were in the region of £246,800. The average amount of ground rent was £60 collected monthly. The lease elapsed in 2075. Considering the 50 years as a residual term we approximated the premium to the landlord to extend the lease to be within £44,700 and £51,600 plus fees.