Purton leases on residential deteriorating in value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Purton will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain situations you may not qualify. There are also strict deadlines and procedures to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Purton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Jake owned a studio apartment in Purton being marketed with a lease of just over fifty eight years unexpired. Jake on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Jake to invoke his statutory right. Jake obtained expert advice and secured satisfactory deal informally and sell the property.
Mr and Mrs. A Bonnet was assigned a lease of a first floor flat in Purton in September 2002. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Identical flats in Purton with an extended lease were valued about £166,400. The mid-range ground rent payable was £60 invoiced quarterly. The lease end date was on 13 November 2079. Considering the 54 years outstanding we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of professional charges.
Ms G Martin purchased a first floor flat in Purton in January 2009. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable residencies in Purton with a long lease were valued around £227,800. The average ground rent payable was £45 invoiced yearly. The lease finished in 2090. Given that there were 65 years remaining we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.