As the length of the unexpired term of a Upper Tean domestic lease decreases so does its value and therefore the value of your property. If the residual term has, more than 100 years remaining then this decrease may be of little impact however there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. The majority of flat owners in Upper Tean will meet the qualifying criteria; nevertheless a lawyer will be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Chelsea 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Upper Tean can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Upper Tean lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted negotiations with the freeholder of her leasehold flat in Upper Tean, Shannon commenced the lease extension process just as her lease was approaching the crucial 80-year threshold. The lease extension was concluded in May 2013. The landlord’s fees were kept to an absolute minimum.
Last Summer we were called by Mr and Mrs. U Ramírez , who purchased a garden flat in Upper Tean in September 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparative homes in Upper Tean with a long lease were in the region of £191,400. The average amount of ground rent was £55 billed annually. The lease finished in 2080. Considering the 54 years outstanding we estimated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 plus costs.
Dr Georgia Clarke acquired a first floor apartment in Upper Tean in August 2000. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar homes in Upper Tean with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 invoiced monthly. The lease end date was on 8 April 2100. Taking into account 74 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.