The closer a residential lease in Water Orton nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than 125 years to run then this decrease may be of little impact nevertheless there will become a point in time 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 increase sharply the cost. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Water Orton will qualify for this right; nevertheless a lawyer can confirm whether you qualify for a lease extension. 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 premises in Water Orton with more than one hundred years outstanding on the lease are often 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 upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancers that we work with undertake Water Orton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Freddie was the the leasehold proprietor of a conversion apartment in Water Orton being sold with a lease of just over 59 years unexpired. Freddie on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Freddie to invoke his statutory right. Freddie obtained expert advice and secured satisfactory deal informally and sell the property.
Mr V Ramírez moved into a newly refurbished apartment in Water Orton in July 1999. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical properties in Water Orton with 100 year plus lease were valued around £295,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease expired in 2099. Considering the 74 years left we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.
In 2013 we were called by Dr E Davies who, having bought a newly refurbished flat in Water Orton in July 2004. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical properties in Water Orton with an extended lease were worth £243,000. The mid-range amount of ground rent was £65 billed monthly. The lease expired in 2088. Given that there were 63 years unexpired we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including professional charges.