As the the remaining lease term of a Polesworth residential lease diminished so does its value and therefore the value of your property. Where the residual term has, in excess of 125 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner than later. Most flat owners in Polesworth will meet the qualifying criteria; however a conveyancing solicitor should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Polesworth can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 procuring Polesworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jake was the the leasehold proprietor of a conversion apartment in Polesworth on the market with a lease of fraction over 61 years remaining. Jake informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Jake to exercise his statutory right. Jake obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Mrs Daisy Collins was assigned a lease of a one bedroom flat in Polesworth in January 2007. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Similar flats in Polesworth with a long lease were worth £205,000. The average ground rent payable was £50 billed annually. The lease concluded on 12 February 2105. Considering the 79 years left we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
Mr and Mrs. B Taylor purchased a newly refurbished flat in Polesworth in June 2004. The question was if we could approximate the premium would be to extend the lease by a further 90 years. Comparable homes in Polesworth with a long lease were in the region of £275,000. The average amount of ground rent was £65 invoiced quarterly. The lease finished in 2094. Given that there were 68 years outstanding we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.