The nearer a domestic lease in Penn and Ettingshall gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 99 years to run then this decrease may be negligible however there will become a point in time when a lease has less 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 primary rational as to why you should consider extending sooner than later. Most flat owners in Penn and Ettingshall will meet the qualifying criteria; however a conveyancing solicitor should be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Penn and Ettingshall with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Penn and Ettingshall can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Penn and Ettingshall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy negotiations with the landlord of her ground floor flat in Penn and Ettingshall, Lucy initiated the lease extension process just as the lease was nearing the crucial 80-year deadline. The transaction completed in July 2005. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. R Clarke bought a recently refurbished flat in Penn and Ettingshall in May 2008. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Similar flats in Penn and Ettingshall with an extended lease were valued about £237,600. The average amount of ground rent was £45 collected monthly. The lease concluded in 2093. Given that there were 67 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus expenses.
Last Summer we were phoned by Mr and Mrs. B Hernández , who took over the lease of a studio apartment in Penn and Ettingshall in October 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Similar flats in Penn and Ettingshall with 100 year plus lease were valued about £280,000. The average amount of ground rent was £55 collected yearly. The lease termination date was on 13 August 2104. Taking into account 78 years remaining we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.