There is no doubt about it a leasehold property in Templecombe is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 100 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner rather than later. Most flat owners in Templecombe will meet the qualifying criteria; nevertheless a conveyancer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be worth the same as 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
The conveyancers that we work with handle Templecombe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Andrew owned a studio flat in Templecombe on the market with a lease of a few days over 61 years remaining. Andrew informally spoke with his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Andrew to invoke his statutory right. Andrew procured expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Last Autumn we were called by Mr Felix Vincent , who completed a ground floor flat in Templecombe in June 2001. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable homes in Templecombe with a long lease were valued about £275,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease ran out on 5 November 2095. Given that there were 69 years remaining we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
In 2012 we were contacted by Mr and Mrs. E Rivera who, having took over the lease of a garden flat in Templecombe in June 1995. The dilemma was if we could approximate the price could be for a 90 year lease extension. Identical premises in Templecombe with an extended lease were valued around £216,000. The mid-range ground rent payable was £60 billed quarterly. The lease elapsed in 2084. Considering the 58 years left we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus legals.