As the the remaining lease term of a Sturminster Newton domestic lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of 125 years remaining then this decrease may be of little impact however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Sturminster Newton will meet the qualifying criteria; that being said 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.
Leasehold premises in Sturminster Newton with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Sturminster Newton can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Sturminster Newton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted negotiations with the landlord of her leasehold flat in Sturminster Newton, Millie initiated the lease extension process just as her lease was coming close to the critical eighty-year threshold. The legal work was finalised in February 2010. The freeholder’s costs were negotiated to less than six hundred pounds.
Mr and Mrs. U Hill bought a one bedroom apartment in Sturminster Newton in October 1995. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Similar flats in Sturminster Newton with an extended lease were valued around £206,200. The average amount of ground rent was £60 billed per annum. The lease came to a finish on 24 November 2081. Considering the 56 years outstanding we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus expenses.
Last October we were called by Dr H Carter , who bought a ground floor flat in Sturminster Newton in April 2002. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparative residencies in Sturminster Newton with an extended lease were worth £300,000. The average amount of ground rent was £50 collected annually. The lease lapsed in 2101. Taking into account 76 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.