As the length of the unexpired term of a Uppingham residential lease diminished so does its value and therefore the value of your property. Where the residual term has, over 125 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Uppingham will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Uppingham with more than 100 years left 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 reversionary interest unless savings on ground rent and service charges merit 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Uppingham leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Oscar was the the leasehold proprietor of a high value flat in Uppingham on the market with a lease of fraction over 61 years remaining. Oscar informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Oscar to exercise his statutory right. Oscar procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2013 we were phoned by Ms Jordan Robinson who, having owned a studio flat in Uppingham in September 2009. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar properties in Uppingham with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £55 billed yearly. The lease ended in 2104. Considering the 78 years remaining we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus costs.
In 2009 we were phoned by Mr and Mrs. M Girard who, having moved into a garden flat in Uppingham in March 2006. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable premises in Uppingham with an extended lease were in the region of £191,000. The mid-range ground rent payable was £65 collected quarterly. The lease end date was on 21 September 2084. Having 58 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 exclusive of fees.