Quorn leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Quorn will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some cases you may not qualify. There are prescribed deadlines and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Quorn with over 100 years left on the lease are often referred to as ‘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 service charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Quorn,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Quorn valuers.
Off the back of unsuccessful discussions with the landlord of her purpose-built apartment in Quorn, Natalie started the lease extension process as the eighty year deadline was quickly advancing. The transaction was finalised in November 2013. The landlord’s fees were kept to an absolute minimum.
In 2014 we were contacted by Mr and Mrs. Y García who, having was assigned a lease of a first floor flat in Quorn in October 2010. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Identical properties in Quorn with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 billed quarterly. The lease termination date was on 13 November 2100. Having 74 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.
In 2012 we were approached by Mr and Mrs. D Jackson who, having bought a ground floor flat in Quorn in May 2007. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical premises in Quorn with 100 year plus lease were valued around £243,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease elapsed in 2089. Considering the 63 years remaining we estimated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus costs.