The nearer a residential lease in Syston nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner rather than later. Most flat owners in Syston will qualify for this right; however a conveyancing solicitor will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service gives you enhanced control over the value of your Syston leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the freeholder of her leasehold flat in Syston, Catherine commenced the lease extension process as the 80 year threshold was rapidly approaching. The lease extension was finalised in September 2013. The landlord’s fees were negotiated to a tad over 600 pounds.
Dr Leon Green completed a newly refurbished flat in Syston in April 2011. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical premises in Syston with a long lease were valued around £184,000. The mid-range amount of ground rent was £55 billed yearly. The lease finished on 3 October 2078. Considering the 53 years unexpired we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of expenses.
In 2013 we were e-mailed by Dr Sam Allen who, having purchased a studio apartment in Syston in March 2011. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Syston with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced yearly. The lease expired in 2098. Considering the 73 years remaining we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.