The closer a domestic lease in Worplesdon nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than one hundred years remaining then this decrease may be fractional however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Worplesdon will qualify for this right; nevertheless a conveyancer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| 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 gives you enhanced control over the value of your Worplesdon leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the freeholder of her basement apartment in Worplesdon, Gemma initiated the lease extension process as the eighty year threshold was fast coming. The lease extension was finalised in August 2008. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were phoned by Ms Bethany Martin who, having acquired a purpose-built flat in Worplesdon in September 2011. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Worplesdon with a long lease were worth £210,600. The mid-range amount of ground rent was £45 invoiced per annum. The lease ended in 2087. Taking into account 62 years as a residual term we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of expenses.
In 2011 we were contacted by Ms Stephanie Rivera who, having owned a recently refurbished flat in Worplesdon in April 1999. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar flats in Worplesdon with 100 year plus lease were worth £265,000. The mid-range ground rent payable was £50 billed per annum. The lease terminated in 2098. Considering the 73 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.