Upton Upon Severn leases on residential deteriorating in value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Upton Upon Severn will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some circumstances you may not qualify. There are also strict timetables and steps to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Upton Upon Severn with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Upton Upon Severn,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Upton Upon Severn valuers.
Blake was the the leasehold owner of a high value apartment in Upton Upon Severn being sold with a lease of fraction over sixty years left. Blake on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be due on a lease extension were Blake to invoke his statutory right. Blake obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
In 2011 we were e-mailed by Mrs K Harris who, having acquired a basement flat in Upton Upon Severn in May 2012. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical homes in Upton Upon Severn with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease termination date was in 2105. Considering the 79 years left we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Last year we were called by Mrs Danielle Bonnet , who moved into a garden flat in Upton Upon Severn in September 2011. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative premises in Upton Upon Severn with an extended lease were valued about £275,000. The mid-range ground rent payable was £65 collected every twelve months. The lease terminated on 11 January 2094. Considering the 68 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.