When it comes to long leasehold property in Sea Mills, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are less than eighty years left. Anyone in Sea Mills with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. When the lease term has less than eighty years left, under the relevant Act the landlord can calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property 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 are not acceptable. 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Sea Mills,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sea Mills valuers.
Jamie was the the leasehold proprietor of a high value apartment in Sea Mills on the market with a lease of a few days over fifty eight years unexpired. Jamie on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Jamie to exercise his statutory right. Jamie obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Mr and Mrs. M Evans took over the lease of a ground floor flat in Sea Mills in August 1996. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative premises in Sea Mills with 100 year plus lease were worth £171,800. The mid-range amount of ground rent was £55 billed annually. The lease terminated on 12 July 2076. Given that there were 50 years unexpired we approximated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus professional charges.
Last Winter we were approach by Mr and Mrs. D Alexander , who was assigned a lease of a recently refurbished apartment in Sea Mills in March 2004. The question was if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Comparable properties in Sea Mills with a long lease were valued about £280,000. The mid-range ground rent payable was £45 collected yearly. The lease lapsed on 9 April 2096. Given that there were 70 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.