Sutton in Ashfield leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard 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 Sutton in Ashfield will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some cases you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is generally accepted 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 all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The lawyers that we work with procure Sutton in Ashfield 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 lawyer we work with provide it.
In the wake of eight months of unsuccessful negotiations with the landlord of her leasehold apartment in Sutton in Ashfield, Rachael commenced the lease extension process just as her lease was approaching the critical eighty-year deadline. The transaction was concluded in October 2014. The landlord’s costs were negotiated to below six hundred GBP.
In 2014 we were approached by Dr Zachary Ricardo who, having bought a one bedroom apartment in Sutton in Ashfield in January 2009. We are asked if we could estimate the premium could be to extend the lease by 90 years. Comparable residencies in Sutton in Ashfield with 100 year plus lease were in the region of £233,200. The mid-range amount of ground rent was £60 billed quarterly. The lease elapsed in 2087. Given that there were 61 years outstanding we calculated the premium to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of legals.
Last month we were contacted by Mr and Mrs. T François , who was assigned a lease of a one bedroom apartment in Sutton in Ashfield in June 2011. The question was if we could approximate the price could be to prolong the lease by an additional years. Identical properties in Sutton in Ashfield with an extended lease were valued around £166,800. The average ground rent payable was £50 billed quarterly. The lease concluded in 2076. Given that there were 50 years left we estimated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus expenses.