The nearer a residential lease in Selston nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 125 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 unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner rather than later. Many flat owners in Selston will meet the qualifying criteria; that being said a conveyancer will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Retaining our service will provide you enhanced control over the value of your Selston leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy correspondence with the freeholder of her leasehold flat in Selston, Abigail started the lease extension process just as the lease was approaching the all-important 80-year mark. The transaction was finalised in July 2011. The landlord’s fees were kept to an absolute minimum.
In 2013 we were e-mailed by Mr Y Cook who, having took over the lease of a first floor flat in Selston in March 2007. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Similar flats in Selston with an extended lease were worth £300,000. The average amount of ground rent was £50 billed yearly. The lease came to a finish in 2101. Given that there were 76 years unexpired we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Last Spring we were phoned by Ms T James , who owned a one bedroom flat in Selston in November 1996. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical residencies in Selston with a long lease were worth £257,800. The mid-range ground rent payable was £65 collected yearly. The lease expired on 11 March 2090. Given that there were 65 years remaining we estimated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of costs.