The Borough leases on domestic deteriorating in value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in The Borough will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in The Borough with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your The Borough leasehold, as your property will be more valuable and saleable in respect of lease length should you want 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.
Following lengthy correspondence with the freeholder of her two bedroom apartment in The Borough, Alexandra commenced the lease extension process as the eighty year threshold was swiftly nearing. The legal work was finalised in August 2009. The freeholder’s fees were negotiated to about 650 pounds.
Mrs R Torres owned a basement flat in The Borough in March 2004. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative properties in The Borough with 100 year plus lease were in the region of £186,000. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish on 13 November 2084. Having 58 years remaining we estimated the premium to the landlord for the lease extension to be within £24,700 and £28,600 not including fees.
Last Christmas we were contacted by Mr and Mrs. G Roberts , who bought a first floor apartment in The Borough in November 1997. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable properties in The Borough with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 collected yearly. The lease lapsed on 15 August 2095. Given that there were 69 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.