When it comes to long leasehold premises in Quorn, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Anyone in Quorn with a lease approaching 81 years remaining should seriously think of extending it without delay. Once a lease has fewer than 80 years outstanding, under the current legislation the landlord is entitled to calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Lease extensions in Quorn can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Quorn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Muhammad, came very near to the 80-year mark with the lease on his studio flat in Quorn. In buying his home 19 years previously, the length of the lease was of little significance. Luckily, he recognised he needed to take action soon on a lease extension. Muhammad was able to extend his lease just under the wire last June. Muhammad and the landlord who owned the flat above in the end settled on an amount of £5,500 . If he had missed the deadline, the premium would have gone up by at least £975.
Last Summer we were contacted by Mr and Mrs. P Dupont , who purchased a first floor flat in Quorn in November 1998. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Identical residencies in Quorn with 100 year plus lease were valued about £300,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ran out on 7 October 2101. Taking into account 76 years left we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.
Last Christmas we were approach by Ms Chelsea Allen , who was assigned a lease of a purpose-built apartment in Quorn in July 1999. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparative properties in Quorn with 100 year plus lease were valued about £252,800. The average ground rent payable was £65 billed quarterly. The lease finished on 2 October 2090. Having 65 years unexpired we approximated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 not including expenses.