Temple Mills leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Temple Mills will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Temple Mills with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Temple Mills,the lease extension solicitors 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 Temple Mills valuers.
Subsequent to unsuccessful correspondence with the freeholder of her first floor apartment in Temple Mills, Millie initiated the lease extension process just as the lease was coming close to the all-important 80-year mark. The legal work was finalised in March 2006. The freeholder’s charges were kept to an absolute minimum.
Dr P Moreau was assigned a lease of a ground floor apartment in Temple Mills in July 2012. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Comparative properties in Temple Mills with an extended lease were valued about £191,000. The mid-range ground rent payable was £65 invoiced monthly. The lease end date was in 2083. Given that there were 58 years as a residual term we calculated the premium to the landlord to extend the lease to be within £23,800 and £27,400 plus fees.
Dr O Nelson purchased a first floor apartment in Temple Mills in November 2011. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar properties in Temple Mills with a long lease were worth £250,000. The mid-range amount of ground rent was £50 collected monthly. The lease elapsed in 2094. Given that there were 69 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.