The closer a domestic lease in Arlesey nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of 100 years to run then this decrease may be negligible nevertheless 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 known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. Most flat owners in Arlesey will meet the qualifying criteria; nevertheless a lawyer should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Arlesey can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor 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 dealing with Arlesey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harrison was the the leasehold owner of a 2 bedroom flat in Arlesey on the market with a lease of fraction over 59 years left. Harrison on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Harrison to exercise his statutory right. Harrison obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2011 we were e-mailed by Mr Tommy Jones who, having completed a ground floor flat in Arlesey in October 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Arlesey with an extended lease were valued about £261,600. The average ground rent payable was £60 invoiced per annum. The lease expiry date was on 18 February 2077. Having 52 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 not including fees.
Last Summer we were contacted by Mr and Mrs. D Richardson , who acquired a ground floor apartment in Arlesey in September 2005. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Similar properties in Arlesey with an extended lease were valued about £218,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired on 24 August 2088. Having 63 years outstanding we approximated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 plus legals.