The closer a domestic lease in Timsbury gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond one hundred years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner rather than later. Many flat owners in Timsbury will meet the qualifying criteria; nevertheless a conveyancer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| 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 |
Engaging our service will provide you enhanced control over the value of your Timsbury leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the freeholder of her two bedroom apartment in Timsbury, Olivia initiated the lease extension process just as her lease was approaching the critical eighty-year threshold. The lease extension was finalised in September 2009. The landlord’s charges were kept to an absolute minimum.
Last year we were phoned by Mr and Mrs. L Cooper , who bought a studio flat in Timsbury in June 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Similar premises in Timsbury with an extended lease were valued about £285,000. The average amount of ground rent was £55 invoiced per annum. The lease ran out on 12 May 2106. Taking into account 80 years remaining we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.
Mrs M Gómez was assigned a lease of a purpose-built flat in Timsbury in November 1996. The question was if we could approximate the premium could be to prolong the lease by 90 years. Similar flats in Timsbury with 100 year plus lease were valued about £200,800. The mid-range ground rent payable was £65 invoiced every twelve months. The lease terminated in 2086. Given that there were 60 years as a residual term we estimated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including professional charges.