Queensbury leases on residential deteriorating in value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Queensbury will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In some situations you may not qualify. There are also strict timetables and formalities to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The lawyers that we work with undertake 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.
In the wake of 9 months of protracted correspondence with the landlord of her purpose-built apartment in Queensbury, Emma started the lease extension process just as her lease was nearing the critical eighty-year deadline. The legal work was finalised in February 2008. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were contacted by Mr and Mrs. N King who, having bought a basement apartment in Queensbury in September 2003. The dilemma was if we could estimate the price could be to prolong the lease by a further 90 years. Comparative residencies in Queensbury with a long lease were valued around £257,800. The average ground rent payable was £65 collected yearly. The lease concluded on 24 January 2090. Considering the 65 years left we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal 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 was in relation to 1 flat. The unexpired lease term was 71.55 years.