Queensbury leases on domestic properties are gradually losing value. Where your lease has about ninety years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay 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 additional value that a lease extension will add to the property. Leasehold owners in Queensbury will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some cases you may not qualify. There are prescribed timetables and steps to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Queensbury with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancers that we work with procure Queensbury 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 conveyancing solicitor we work with provide it.
Off the back of protracted negotiations with the freeholder of her studio apartment in Queensbury, Louise initiated the lease extension process as the eighty year threshold was quickly advancing. The transaction was concluded in May 2005. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were called by Ms D Ricardo who, having owned a newly refurbished flat in Queensbury in October 2004. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Identical premises in Queensbury with an extended lease were worth £233,200. The average ground rent payable was £60 invoiced per annum. The lease lapsed on 13 June 2087. Having 61 years outstanding we estimated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 not including costs.
An example of a Lease Extension case for a Queensbury residence is 20 Orchard Court Stonegrove in June 2009. The tribunal decided that a premium of £11,040 should be payable for the new lease This case related to 1 flat. The unexpired lease term was 71.55 years.