There is no doubt about it a leasehold flat or house in Almondsbury is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of 100 years remaining then this decrease may be fractional however there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Almondsbury will qualify for this right; however a conveyancing solicitor can advise if you qualify for a lease extension. In limited 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 over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Almondsbury,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Almondsbury valuers.
Thomas owned a studio apartment in Almondsbury being sold with a lease of just over 59 years remaining. Thomas on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be due on a lease extension were Thomas to exercise his statutory right. Thomas obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last Summer we were phoned by Mr and Mrs. G François , who bought a first floor flat in Almondsbury in June 1995. The question was if we could estimate the premium would be for a 90 year lease extension. Comparative premises in Almondsbury with an extended lease were valued around £183,600. The mid-range amount of ground rent was £65 billed every twelve months. The lease elapsed on 17 April 2082. Considering the 57 years outstanding we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including professional charges.
Last Winter we were approach by Dr R Harris , who purchased a garden flat in Almondsbury in April 2011. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Similar premises in Almondsbury with a long lease were valued about £245,000. The average ground rent payable was £50 billed per annum. The lease lapsed on 27 May 2093. Given that there were 68 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.