The closer a residential lease in Sharnbrook nears to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 99 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Sharnbrook will qualify for this right; however a lawyer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
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 additional ninety years added to all but the shortest lease, 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Sharnbrook leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the landlord of her basement flat in Sharnbrook, Emma initiated the lease extension process just as her lease was approaching the crucial 80-year deadline. The legal work was finalised in January 2011. The freeholder’s charges were negotiated to less than 700 GBP.
Dr Ella Ali was assigned a lease of a one bedroom flat in Sharnbrook in January 2007. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative residencies in Sharnbrook with an extended lease were valued about £196,400. The mid-range amount of ground rent was £55 billed per annum. The lease elapsed on 15 June 2079. Given that there were 54 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £35,200 and £40,600 not including expenses.
In 2014 we were phoned by Ms K Cooper who, having acquired a purpose-built flat in Sharnbrook in September 2011. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Similar properties in Sharnbrook with a long lease were worth £295,000. The mid-range ground rent payable was £45 billed annually. The lease ran out on 11 March 2100. Considering the 75 years outstanding we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.