When it comes to long leasehold property in Priorslee, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Residents in Priorslee with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has less than 80 years outstanding, under the relevant Act the landlord can calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Priorslee leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Hugo, came dangerously near to the eighty-year threshold with the lease on his leasehold apartment in Priorslee. In buying his home two decades ago, the unexpired term was of little interest. Thankfully, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Hugo extended the lease just in the nick of time last August. Hugo and the landlord who owned the flat above ultimately settled on sum of £5,500 . If he had missed the deadline, the price would have gone up by a minimum £1,000.
Last Autumn we were phoned by Mr and Mrs. U Bennett , who purchased a purpose-built apartment in Priorslee in November 2012. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative residencies in Priorslee with a long lease were in the region of £275,000. The average amount of ground rent was £65 invoiced every twelve months. The lease ended in 2094. Taking into account 68 years unexpired we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
In 2014 we were contacted by Mrs Maisie Mercier who, having took over the lease of a basement apartment in Priorslee in January 2009. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Identical premises in Priorslee with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 invoiced every twelve months. The lease lapsed on 10 August 2083. Considering the 57 years outstanding we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of costs.