As the length of the unexpired term of a Trentham domestic lease diminished so does its value and therefore the value of your property. Where the lease has, beyond one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Trentham will qualify for this right; that being said a conveyancer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Trentham with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
The conveyancing solicitors that we work with handle Trentham 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.
Toby was the the leasehold owner of a conversion apartment in Trentham on the market with a lease of fraction over sixty years left. Toby on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Toby to invoke his statutory right. Toby procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Last Summer we were e-mailed by Ms R Rogers , who took over the lease of a one bedroom flat in Trentham in August 1997. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Trentham with an extended lease were valued around £196,400. The mid-range amount of ground rent was £55 billed monthly. The lease came to a finish on 5 March 2080. Having 54 years unexpired we calculated the premium to the freeholder for the lease extension to be between £35,200 and £40,600 plus costs.
In 2013 we were approached by Mr and Mrs. D Phillips who, having took over the lease of a first floor apartment in Trentham in October 1997. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable properties in Trentham with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed annually. The lease ran out on 9 November 2100. Given that there were 74 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.