Unfortunately that a Arlesey residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Arlesey property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Arlesey will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Arlesey with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Chelsea 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Arlesey,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 Arlesey valuers.
Twenty four months ago Luke, came critically near to the 80-year threshold with the lease on his ground floor flat in Arlesey. Having purchased his flat two decades ago, the length of the lease was of little importance. Luckily, it dawned on him that he would soon be paying an escalated premium for a lease extension. Luke arranged for a lease extension at the eleventh hour last April. Luke and the landlord eventually agreed on sum of £5,000 . If the lease had dropped lower than 80 years, the premium would have escalated by a minimum £875.
Dr Ali Lefebvre took over the lease of a first floor apartment in Arlesey in August 2011. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparative flats in Arlesey with 100 year plus lease were valued about £166,400. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease elapsed on 2 November 2080. Considering the 54 years unexpired we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of costs.
Dr Grace Taylor purchased a one bedroom apartment in Arlesey in November 1997. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparative residencies in Arlesey with 100 year plus lease were worth £232,800. The average amount of ground rent was £45 billed quarterly. The lease elapsed on 18 April 2091. Considering the 65 years outstanding we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.