Standish leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Standish will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are prescribed timetables and steps to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Retaining our service gives you better control over the value of your Standish leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the landlord of her basement flat in Standish, Madeleine started the lease extension process just as the lease was approaching the critical 80-year mark. The lease extension was concluded in June 2010. The freeholder’s fees were negotiated to about 650 GBP.
Last Spring we were contacted by Dr H King , who owned a studio flat in Standish in October 2011. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Similar homes in Standish with an extended lease were in the region of £275,000. The average amount of ground rent was £55 invoiced every twelve months. The lease ran out on 28 November 2102. Given that there were 76 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Mr and Mrs. E Mercier owned a recently refurbished apartment in Standish in August 2012. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Standish with 100 year plus lease were worth £176,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease ended on 27 June 2082. Taking into account 56 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of costs.