Sowerby Bridge leases on domestic deteriorating in value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Sowerby Bridge will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Sowerby Bridge can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Sowerby Bridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy discussions with the landlord of her one bedroom flat in Sowerby Bridge, Shannon commenced the lease extension process just as the lease was nearing the crucial 80-year deadline. The lease extension was finalised in July 2013. The landlord’s costs were negotiated to a tad over 700 GBP.
Mr and Mrs. C Morgan purchased a purpose-built apartment in Sowerby Bridge in April 2006. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative residencies in Sowerby Bridge with an extended lease were worth £200,800. The average ground rent payable was £65 billed every twelve months. The lease ended in 2085. Taking into account 60 years outstanding we estimated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 plus expenses.
In 2009 we were contacted by Mr Dexter Parker who, having bought a ground floor flat in Sowerby Bridge in August 2006. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparative residencies in Sowerby Bridge with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 collected annually. The lease came to a finish on 22 March 2096. Given that there were 71 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.