Unfortunately that a Polesworth residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Polesworth property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining 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. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Polesworth will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Polesworth with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Polesworth can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 dealing with Polesworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Milo, started to get near to the eighty-year mark with the lease on his studio flat in Polesworth. In buying his flat two decades ago, the unexpired term was of minimal relevance. As luck would have it, it dawned on him that he would soon be paying an escalated premium for a lease extension. Milo extended the lease at the eleventh hour last March. Milo and the freeholder eventually agreed on sum of £5,000 . If the lease had dipped to less than eighty years, the sum would have escalated by a minimum £1,100.
Last Christmas we were e-mailed by Mr O James , who owned a first floor apartment in Polesworth in February 2006. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Polesworth with an extended lease were in the region of £235,600. The mid-range ground rent payable was £60 billed per annum. The lease expired in 2087. Having 62 years remaining we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus professional charges.
Mr and Mrs. H Anderson was assigned a lease of a one bedroom apartment in Polesworth in April 2012. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Identical residencies in Polesworth with a long lease were valued around £174,200. The average amount of ground rent was £55 invoiced annually. The lease ran out on 27 September 2076. Having 51 years unexpired we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.