Unfortunately that a Priorslee residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Priorslee property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining falls below eighty years, you will then be required to pay half 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 Priorslee will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Priorslee,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Priorslee valuers.
In the wake of 9 months of protracted discussions with the landlord of her first floor apartment in Priorslee, Sophie initiated the lease extension process as the 80 year threshold was fast coming. The legal work was finalised in September 2011. The landlord’s fees were negotiated to approximately 700 pounds.
Last April we were e-mailed by Mr U Vincent , who purchased a first floor flat in Priorslee in May 2006. The question was if we could approximate the premium could be for a 90 year lease extension. Identical residencies in Priorslee with 100 year plus lease were valued around £174,200. The average amount of ground rent was £55 collected yearly. The lease expired on 26 October 2077. Having 51 years left we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus professional charges.
In 2010 we were e-mailed by Dr H Ramírez who, having took over the lease of a recently refurbished flat in Priorslee in May 1999. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparative premises in Priorslee with a long lease were worth £285,000. The average amount of ground rent was £45 collected yearly. The lease ran out in 2097. Having 71 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.