The closer a residential lease in Quinton gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, beyond one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner than later. Many flat owners in Quinton will meet the qualifying criteria; however a lawyer should be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 handle Quinton 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 lawyer we work with provide it.
Last year Nathan, came precariously near to the eighty-year mark with the lease on his leasehold apartment in Quinton. Having purchased his property twenty years ago, the unexpired term was of little significance. As luck would have it, he noticed he would imminently be paying an inflated amount for Extending the lease. Nathan was able to extend his lease just under the wire in April. Nathan and the landlord who owned the flat above ultimately agreed on an amount of £6,000 . If he failed to meet the deadline, the figure would have escalated by a minimum £950.
Mr S López moved into a one bedroom flat in Quinton in January 2011. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative properties in Quinton with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced annually. The lease finished on 17 March 2096. Having 71 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
In 2009 we were e-mailed by Mrs C Flores who, having purchased a basement flat in Quinton in June 1996. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Comparative flats in Quinton with 100 year plus lease were in the region of £225,800. The mid-range ground rent payable was £60 billed per annum. The lease terminated on 3 June 2085. Having 60 years left we calculated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 plus expenses.