Selston leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Selston enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Selston you really ought to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Selston leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Lucas owned a 2 bedroom flat in Selston being sold with a lease of a little over sixty years left. Lucas informally spoke with his freeholder a well known local-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 Lucas to invoke his statutory right. Lucas obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2012 we were approached by Dr Jade Wilson who, having was assigned a lease of a basement apartment in Selston in May 1996. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable premises in Selston with an extended lease were in the region of £181,600. The mid-range ground rent payable was £55 billed quarterly. The lease ran out on 21 November 2077. Taking into account 52 years left we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus expenses.
Last Summer we were contacted by Mr T Taylor , who completed a garden apartment in Selston in January 2000. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparative residencies in Selston with a long lease were worth £290,000. The mid-range ground rent payable was £45 invoiced per annum. The lease came to a finish in 2097. Considering the 72 years outstanding we calculated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 not including fees.