There is no doubt about it a leasehold flat or house in Sturminster Newton is a wasting asset as a result of the shortening lease. Where the lease has, more than 100 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Sturminster Newton will qualify for this right; however a conveyancing solicitor can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Sturminster Newton 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 conveyancer we work with provide it.
Following protracted correspondence with the freeholder of her garden apartment in Sturminster Newton, Lucy commenced the lease extension process just as the lease was nearing the all-important 80-year deadline. The legal work completed in July 2011. The landlord’s charges were kept to an absolute minimum.
In 2012 we were e-mailed by Dr Charlotte González who, having took over the lease of a one bedroom apartment in Sturminster Newton in August 1996. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable properties in Sturminster Newton with an extended lease were in the region of £189,000. The average ground rent payable was £55 billed monthly. The lease concluded on 1 November 2079. Considering the 53 years left we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of fees.
Dr U Cooper acquired a ground floor apartment in Sturminster Newton in January 2003. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Comparative homes in Sturminster Newton with 100 year plus lease were worth £290,000. The average ground rent payable was £45 collected annually. The lease elapsed on 13 May 2099. Having 73 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.