As the the remaining lease term of a Syston residential lease lessens so does its value and therefore the value of your property. Where the lease has, beyond 100 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner rather than later. The majority of flat owners in Syston will meet the qualifying criteria; however a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Syston,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Syston valuers.
During the course of the last few months Seth, came precariously close to the eighty-year threshold with the lease on his garden flat in Syston. Having purchased his property two decades ago, the length of the lease was of little relevance. As luck would have it, he noticed he needed to take action soon on a lease extension. Seth arranged for a lease extension just under the wire in May. Seth and the freeholder via the managing agents subsequently settled on a premium of £5,500 . If the lease had dipped to less than eighty years, the figure would have gone up by at least £1,125.
In 2010 we were approached by Mr and Mrs. D Bonnet who, having took over the lease of a one bedroom apartment in Syston in September 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative homes in Syston with an extended lease were valued about £200,000. The average ground rent payable was £50 collected per annum. The lease came to a finish on 26 May 2102. Given that there were 77 years left we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.
Last March we were phoned by Mr Toby Fournier , who moved into a one bedroom flat in Syston in October 2007. We are asked if we could estimate the price would be for a 90 year lease extension. Similar residencies in Syston with 100 year plus lease were in the region of £260,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease expired on 10 January 2091. Taking into account 66 years unexpired we calculated the premium to the landlord for the lease extension to be between £16,200 and £18,600 not including professional charges.