St Margarets leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay 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 to the property. Leasehold owners in St Margarets will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are also strict timetables and steps to follow once the process has started so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in St Margarets,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with St Margarets valuers.
Off the back of unsuccessful discussions with the landlord of her one bedroom apartment in St Margarets, Jennifer initiated the lease extension process as the eighty year mark was quickly advancing. The legal work completed in September 2013. The freeholder’s costs were restricted to a tad over 600 pounds.
Mr Jude Martinez owned a one bedroom apartment in St Margarets in August 2001. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparative homes in St Margarets with an extended lease were valued around £280,000. The average ground rent payable was £45 billed monthly. The lease expired on 8 September 2094. Considering the 69 years left we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.
An example of a Lease Extension matter before the tribunal for a St Margarets flat is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case related to 1 flat. The unexpired lease term was 60.45 years.