There is no doubt about it a leasehold flat or house in Upton Upon Severn is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner rather than later. The majority of flat owners in Upton Upon Severn will qualify for this right; that being said a conveyancing solicitor should 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 in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Upton Upon Severn can be a difficult process. We recommend you secure 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 a wealth of experience procuring Upton Upon Severn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alexander owned a 2 bedroom apartment in Upton Upon Severn on the market with a lease of a little over sixty years remaining. Alexander on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Alexander to exercise his statutory right. Alexander obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Dr M Nelson purchased a ground floor flat in Upton Upon Severn in September 2011. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Similar flats in Upton Upon Severn with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed monthly. The lease came to a finish on 17 January 2081. Given that there were 55 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 plus costs.
Last month we were phoned by Ms Sophie Wood , who bought a purpose-built apartment in Upton Upon Severn in March 1997. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparable residencies in Upton Upon Severn with an extended lease were in the region of £295,000. The average ground rent payable was £50 billed yearly. The lease finished in 2101. Given that there were 75 years left we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.