There is no doubt about it a leasehold flat or house in Talbot Green is a wasting asset as a result of the diminishing lease term. If the lease has, more than 100 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. The majority of flat owners in Talbot Green will qualify for this right; nevertheless a lawyer should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 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 |
|---|---|
| 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. |
| 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 are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
Lease extensions in Talbot Green can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 in-depth market knowledge dealing with Talbot Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year David, started to get near to the eighty-year mark with the lease on his purpose- built flat in Talbot Green. Having purchased his home two decades ago, the lease term was of little significance. As luck would have it, he recognised he needed to take steps soon on a lease extension. David was able to extend his lease just under the wire last August. David and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If the lease had slipped lower than 80 years, the figure would have escalated by a minimum £1,100.
Last May we were called by Mr and Mrs. N Cooper , who moved into a studio flat in Talbot Green in May 2010. The dilemma was if we could estimate the price could be for a ninety year lease extension. Similar properties in Talbot Green with an extended lease were worth £270,000. The average ground rent payable was £55 invoiced yearly. The lease termination date was in 2102. Considering the 76 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Dr Samantha Nelson was assigned a lease of a purpose-built apartment in Talbot Green in July 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Comparative residencies in Talbot Green with 100 year plus lease were in the region of £176,200. The average ground rent payable was £65 collected yearly. The lease lapsed in 2082. Having 56 years left we estimated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 not including professional charges.