The nearer a domestic lease in Slade Green gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 100 years to run then this decrease may be fractional however there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. Most flat owners in Slade Green will meet the qualifying criteria; however a conveyancer can 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 conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Halifax | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Slade Green,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 Slade Green valuers.
Off the back of unsuccessful negotiations with the landlord of her purpose-built apartment in Slade Green, Zoe initiated the lease extension process just as the lease was approaching the crucial 80-year threshold. The transaction completed in November 2008. The landlord’s fees were restricted to under 450 GBP.
Dr Stanley Flores completed a newly refurbished apartment in Slade Green in August 2008. The question was if we could estimate the price would likely be for a ninety year lease extension. Similar properties in Slade Green with an extended lease were in the region of £205,000. The average amount of ground rent was £50 invoiced quarterly. The lease lapsed in 2105. Having 79 years left we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.
An example of a Lease Extension decision for a Slade Green premises is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case related to 13 flats. The unexpired residue of the current lease was 76 years.