Umberleigh leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Umberleigh will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Umberleigh with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Umberleigh leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ibrahim owned a conversion flat in Umberleigh on the market with a lease of just over fifty eight years outstanding. Ibrahim on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Ibrahim to exercise his statutory right. Ibrahim procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
Last Autumn we were e-mailed by Dr Rhiannon Sánchez , who owned a first floor flat in Umberleigh in January 1996. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar premises in Umberleigh with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 collected yearly. The lease finished in 2100. Given that there were 75 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.
Mr and Mrs. O Pérez was assigned a lease of a recently refurbished apartment in Umberleigh in October 2001. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparable properties in Umberleigh with a long lease were valued about £250,400. The mid-range ground rent payable was £65 collected every twelve months. The lease ran out on 25 September 2089. Given that there were 64 years remaining we calculated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 not including professional charges.