The nearer a residential lease in Staines nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over 125 years to run then this decrease may be of little impact nevertheless 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 termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending without delay. Most flat owners in Staines will qualify for this right; nevertheless a lawyer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Staines with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Regardless of whether you are a tenant or a landlord in Staines,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 Staines valuers.
Last Spring Alex, started to get close to the 80-year mark with the lease on his leasehold flat in Staines. Having bought his property two decades ago, the length of the lease was of minimal concern. As luck would have it, he noticed he needed to take steps soon on a lease extension. Alex was able to extend his lease at the eleventh hour last January. Alex and the landlord in the end settled on a premium of £6,000 . If the lease had fallen lower than eighty years, the amount would have gone up by at least £950.
In 2011 we were e-mailed by Mr and Mrs. I Kelly who, having was assigned a lease of a ground floor flat in Staines in October 2009. We are asked if we could approximate the price could be to prolong the lease by an additional years. Identical properties in Staines with an extended lease were valued around £270,000. The average ground rent payable was £55 collected per annum. The lease ran out in 2100. Given that there were 75 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
An example of a Lease Extension case for a Staines residence is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case related to 1 flat. The unexpired residue of the current lease was 82.93 years.