Taverham leases on domestic deteriorating in value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Taverham will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold premises in Taverham with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Taverham can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in lease extensions.
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 Taverham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Felix, came critically close to the 80-year threshold with the lease on his basement apartment in Taverham. Having bought his flat 18 years previously, the lease term was of little significance. As luck would have it, he noticed he would soon be paying way over the odds for a lease extension. Felix extended the lease just under the wire last June. Felix and the freeholder via the management company in the end settled on the final figure of £5,000 . If he not met the deadline, the figure would have escalated by at least £1,075.
Last year we were approach by Mrs Jade Mercier , who owned a ground floor flat in Taverham in February 1999. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative premises in Taverham with a long lease were valued about £265,000. The average ground rent payable was £50 billed yearly. The lease ran out in 2099. Having 74 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Dr A Wright was assigned a lease of a one bedroom flat in Taverham in June 2008. The question was if we could approximate the premium could be to prolong the lease by ninety years. Identical flats in Taverham with 100 year plus lease were valued around £166,400. The average amount of ground rent was £60 collected yearly. The lease came to a finish on 1 June 2079. Given that there were 54 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of fees.