Unfortunately that a Arlesey residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Arlesey property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Arlesey will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Arlesey with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Arlesey,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Arlesey valuers.
Last year Ollie, started to get near to the eighty-year mark with the lease on his one bedroom flat in Arlesey. In buying his home twenty years ago, the unexpired term was of minimal interest. As luck would have it, he recognised he needed to take steps soon on a lease extension. Ollie was able to extend his lease at the eleventh hour in May. Ollie and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If the lease had gone to less than 80 years, the amount would have increased by a minimum £1,025.
Last month we were contacted by Ms B Carter , who owned a garden apartment in Arlesey in September 1996. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Comparative flats in Arlesey with an extended lease were in the region of £208,200. The mid-range ground rent payable was £65 collected every twelve months. The lease concluded on 25 March 2087. Considering the 61 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 plus costs.
In 2009 we were phoned by Mrs I Pérez who, having owned a recently refurbished flat in Arlesey in October 2001. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Similar properties in Arlesey with 100 year plus lease were worth £260,000. The average ground rent payable was £50 collected monthly. The lease terminated in 2098. Given that there were 72 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.