Unfortunately that a Queenborough 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 first few years due to the loss of value being disguised by increases in the Queenborough property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term drops below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee 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 should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
Leasehold properties in Queenborough with in excess of one hundred years left 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Retaining our service gives you enhanced control over the value of your Queenborough leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Thomas, came dangerously near to the 80-year threshold with the lease on his first floor flat in Queenborough. In buying his home two decades ago, the lease term was of little importance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Thomas extended the lease just under the wire in May. Thomas and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If the lease had gone to less than eighty years, the price would have gone up by at least £900.
Last Autumn we were e-mailed by Mrs Robyn Green , who moved into a recently refurbished flat in Queenborough in June 2010. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Identical homes in Queenborough with 100 year plus lease were worth £233,200. The mid-range amount of ground rent was £60 billed annually. The lease came to a finish in 2087. Having 61 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 not including expenses.
In 2011 we were phoned by Dr E Wilson who, having owned a studio apartment in Queenborough in February 1999. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Comparative properties in Queenborough with 100 year plus lease were valued about £166,800. The average amount of ground rent was £50 billed yearly. The lease expired on 27 October 2076. Considering the 50 years remaining we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 plus expenses.