Unfortunately that a Queenborough residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Queenborough property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term dips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of 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 Most flat owners in Queenborough will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold premises in Queenborough with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Queenborough can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor 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 in-depth market knowledge dealing with Queenborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Dylan, came very close to the eighty-year mark with the lease on his first floor apartment in Queenborough. In buying his flat 19 years ago, the unexpired term was of little bearing. Thankfully, he realised he would soon be paying an inflated amount for a lease extension. Dylan was able to extend his lease just under the wire last July. Dylan and the freeholder subsequently agreed on an amount of £6,000 . If he not met the deadline, the price would have gone up by at least £1,025.
Dr Lucy Morris acquired a basement apartment in Queenborough in February 2001. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparable flats in Queenborough with an extended lease were valued around £270,000. The mid-range ground rent payable was £65 collected annually. The lease concluded on 23 September 2093. Having 68 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
In 2013 we were phoned by Dr Y García who, having acquired a ground floor flat in Queenborough in November 2003. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable properties in Queenborough with 100 year plus lease were in the region of £208,600. The average ground rent payable was £60 collected quarterly. The lease ended in 2082. Given that there were 57 years outstanding we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including expenses.