The nearer a domestic lease in South Molton gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 99 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years remaining 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 logic behind why you should extend the lease sooner as opposed to later. Many flat owners in South Molton will qualify for this right; however a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure South Molton 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 lawyer we work with provide it.
Subsequent to lengthy correspondence with the landlord of her one bedroom apartment in South Molton, Hollie commenced the lease extension process as the eighty year deadline was swiftly coming. The legal work completed in September 2010. The landlord’s charges were negotiated to about 650 GBP.
Mr and Mrs. K Wilson completed a basement apartment in South Molton in May 1997. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical homes in South Molton with an extended lease were in the region of £275,000. The average amount of ground rent was £45 billed yearly. The lease finished on 28 May 2094. Taking into account 69 years remaining we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.
In 2012 we were phoned by Mr and Mrs. I Taylor who, having owned a one bedroom flat in South Molton in April 2004. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Similar premises in South Molton with a long lease were worth £216,000. The mid-range ground rent payable was £60 invoiced per annum. The lease finished on 8 May 2083. Given that there were 58 years outstanding we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus costs.