Tedburn St Mary leases on domestic deteriorating in value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term is less than eighty 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 Tedburn St Mary will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and steps to comply with once the process is initiated so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Tedburn St Mary with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Retaining our service will provide you increased control over the value of your Tedburn St Mary leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ibrahim owned a 2 bedroom apartment in Tedburn St Mary being marketed with a lease of a little over fifty eight years outstanding. Ibrahim informally approached his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert legal guidance and secured an acceptable deal informally and sell the flat.
Mr E Moreau acquired a ground floor apartment in Tedburn St Mary in April 1997. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Identical properties in Tedburn St Mary with a long lease were worth £200,000. The average amount of ground rent was £50 invoiced per annum. The lease expired in 2103. Given that there were 78 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
In 2011 we were called by Mr and Mrs. D Mercier who, having was assigned a lease of a garden apartment in Tedburn St Mary in May 1999. The question was if we could approximate the premium could be to prolong the lease by 90 years. Identical flats in Tedburn St Mary with an extended lease were worth £267,600. The average amount of ground rent was £65 collected per annum. The lease terminated on 10 July 2092. Given that there were 67 years unexpired we estimated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 plus legals.