When it comes to long leasehold property in Quinton, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years remaining. Anyone in Quinton with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has under 80 years remaining, under the relevant legislation the landlord can calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
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 further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with undertake 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.
In the wake of eight months of protracted discussions with the freeholder of her two bedroom apartment in Quinton, Georgia started the lease extension process as the eighty year threshold was swiftly coming. The transaction was concluded in July 2007. The landlord’s charges were kept to an absolute minimum.
In 2010 we were called by Mr and Mrs. W Morgan who, having bought a ground floor apartment in Quinton in March 2005. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative residencies in Quinton with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 billed yearly. The lease ran out on 9 September 2099. Considering the 73 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Last month we were contacted by Dr V Allen , who acquired a garden flat in Quinton in January 2009. We are asked if we could estimate the premium would be to extend the lease by 90 years. Identical flats in Quinton with 100 year plus lease were valued around £240,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease expired in 2088. Taking into account 62 years unexpired we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including legals.