Unfortunately that a Sewardstonebury residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Sewardstonebury property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term slips under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Sewardstonebury will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 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 ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Yorkshire 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. |
The lawyers that we work with undertake Sewardstonebury lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 6 months of lengthy negotiations with the freeholder of her studio flat in Sewardstonebury, Caitlin started the lease extension process just as her lease was approaching the critical eighty-year mark. The transaction completed in July 2010. The landlord’s fees were negotiated to under 550 GBP.
Mr E Watson owned a one bedroom apartment in Sewardstonebury in February 1996. The dilemma was if we could estimate the price could be to prolong the lease by a further 90 years. Comparative properties in Sewardstonebury with an extended lease were worth £176,200. The average ground rent payable was £65 invoiced monthly. The lease finished in 2082. Considering the 56 years outstanding we estimated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of costs.
Mr and Mrs. S Torres took over the lease of a one bedroom flat in Sewardstonebury in January 1996. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparable properties in Sewardstonebury with 100 year plus lease were valued around £242,600. The average amount of ground rent was £45 invoiced yearly. The lease ended in 2093. Considering the 67 years remaining we estimated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of costs.