As the length of the unexpired term of a Polegate residential lease diminished so does its value and therefore the value of your property. If the residual term has, more than 125 years to run then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Polegate will meet the qualifying criteria; however a lawyer can advise whether you qualify 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 over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Polegate,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Polegate valuers.
Trailing lengthy discussions with the freeholder of her basement apartment in Polegate, Morgan commenced the lease extension process just as the lease was nearing the all-important eighty-year deadline. The transaction was concluded in October 2008. The landlord’s fees were kept to an absolute minimum.
In 2009 we were phoned by Ms T Bell who, having owned a purpose-built flat in Polegate in October 2009. The question was if we could estimate the premium would be for a ninety year extension to my lease. Similar residencies in Polegate with 100 year plus lease were valued around £255,000. The average ground rent payable was £50 invoiced quarterly. The lease expired in 2096. Taking into account 71 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.
In 2009 we were called by Mr and Mrs. U Baker who, having purchased a garden apartment in Polegate in August 1998. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical homes in Polegate with an extended lease were valued around £249,200. The mid-range amount of ground rent was £60 billed quarterly. The lease terminated in 2076. Given that there were 51 years remaining we calculated the compensation to the landlord for the lease extension to be between £42,800 and £49,400 plus fees.