Temple Mills leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Temple Mills enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Temple Mills you should see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Lloyds TSB Scotland | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced control over the value of your Temple Mills leasehold, as your property will be more valuable and marketable in respect of 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.
In recent months Archie, came seriously close to the eighty-year mark with the lease on his ground floor flat in Temple Mills. In buying his flat two decades ago, the lease term was of little importance. by good luck, he recognised he would soon be paying an inflated amount for a lease extension. Archie extended the lease at the eleventh hour in January. Archie and the freeholder ultimately settled on the final figure of £6,000 . If the lease had dropped lower than eighty years, the price would have gone up by at least £1,025.
Mrs D Clark completed a one bedroom flat in Temple Mills in June 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparative properties in Temple Mills with a long lease were worth £275,000. The mid-range ground rent payable was £55 collected monthly. The lease terminated in 2102. Given that there were 77 years remaining we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus costs.
Mrs F Sharif purchased a one bedroom apartment in Temple Mills in July 1995. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative residencies in Temple Mills with a long lease were worth £183,600. The average ground rent payable was £65 billed quarterly. The lease expired in 2082. Having 57 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.