As the the remaining lease term of a Polesworth residential lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of 99 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner than later. The majority of flat owners in Polesworth will meet the qualifying criteria; nevertheless a lawyer will be able to advise if you are eligible 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.
Leasehold properties in Polesworth with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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 |
Lease extensions in Polesworth can be a difficult process. We recommend you get professional help from a lawyer 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.
Trailing protracted negotiations with the freeholder of her studio flat in Polesworth, Tia started the lease extension process just as her lease was nearing the critical 80-year deadline. The transaction completed in March 2007. The freeholder’s costs were negotiated to about 550 GBP.
Dr Madeleine Collins owned a garden apartment in Polesworth in November 1995. We are asked if we could estimate the price would likely be for a ninety year lease extension. Similar residencies in Polesworth with a long lease were valued about £267,600. The mid-range ground rent payable was £65 collected per annum. The lease came to a finish on 13 May 2092. Considering the 67 years remaining we approximated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 not including costs.
In 2011 we were approached by Mr Kai Davis who, having purchased a one bedroom flat in Polesworth in January 2006. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Similar residencies in Polesworth with 100 year plus lease were valued around £201,200. The mid-range ground rent payable was £55 billed per annum. The lease came to a finish in 2081. Considering the 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of legals.