As the length of the unexpired term of a Worsley domestic lease lessens so does its value and therefore the value of your property. If the lease has, over 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 eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Worsley will meet the qualifying criteria; that being said a lawyer should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Worsley,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Worsley valuers.
Kai owned a studio apartment in Worsley being marketed with a lease of fraction over 61 years outstanding. Kai informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Kai to exercise his statutory right. Kai obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Dr Katherine Martin owned a purpose-built apartment in Worsley in June 1996. The question was if we could estimate the premium would likely be for a 90 year lease extension. Similar flats in Worsley with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £45 collected every twelve months. The lease terminated in 2095. Taking into account 70 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
Mr and Mrs. C Rivera was assigned a lease of a newly refurbished apartment in Worsley in February 1998. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar residencies in Worsley with an extended lease were in the region of £223,400. The average ground rent payable was £60 collected every twelve months. The lease termination date was in 2084. Considering the 59 years remaining we approximated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 plus professional charges.