It’s an underpublicised certainty that a Upton Upon Severn residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Upton Upon Severn property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining drops below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Upton Upon Severn will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Upton Upon Severn with in excess of 100 years outstanding 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Upton Upon Severn leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Jake, started to get near to the 80-year mark with the lease on his basement apartment in Upton Upon Severn. In buying his property twenty years ago, the unexpired term was of no significance. Thankfully, he realised he would soon be paying way over the odds for Extending the lease. Jake arranged for a lease extension just in the nick of time in July. Jake and the landlord who owned the flat above in the end agreed on the final figure of £5,500 . If he failed to meet the deadline, the amount would have gone up by a minimum £925.
In 2009 we were approached by Mr and Mrs. K Girard who, having was assigned a lease of a studio flat in Upton Upon Severn in March 2002. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical properties in Upton Upon Severn with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease terminated on 21 November 2102. Taking into account 77 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.
Mr U Mercier owned a one bedroom apartment in Upton Upon Severn in September 1998. The question was if we could estimate the premium would be for a ninety year lease extension. Comparative premises in Upton Upon Severn with a long lease were worth £260,200. The mid-range ground rent payable was £65 invoiced monthly. The lease termination date was on 19 November 2091. Considering the 66 years remaining we approximated the premium to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of legals.