The closer a domestic lease in Scotter gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of one hundred years to run then this decrease may be of little impact that being said there will become a point in time 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 primary rational as to why you should extend the lease without delay. Most flat owners in Scotter will meet the qualifying criteria; however a lawyer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Scotter with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your Scotter leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful discussions with the freeholder of her first floor apartment in Scotter, Jodie started the lease extension process as the 80 year threshold was fast approaching. The legal work completed in April 2010. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were e-mailed by Dr Imogen Flores who, having completed a garden flat in Scotter in March 2005. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparative residencies in Scotter with a long lease were worth £245,000. The average ground rent payable was £45 billed monthly. The lease termination date was on 27 May 2094. Taking into account 68 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
Last year we were approach by Mr and Mrs. B Hernández , who bought a one bedroom apartment in Scotter in October 2004. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Similar properties in Scotter with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 billed every twelve months. The lease expiry date was in 2105. Having 79 years left we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.