Arlesey leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Arlesey will usually qualify for a lease extension; however a solicitor will check your eligibility. In some situations you may not be entitled. There are also strict timetables and steps to comply with once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Arlesey with more than one hundred years left 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 property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Arlesey leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the freeholder of her purpose-built apartment in Arlesey, Alisha started the lease extension process just as her lease was approaching the all-important 80-year deadline. The lease extension was finalised in October 2008. The landlord’s charges were negotiated to under 600 pounds.
Mr and Mrs. P Hernández owned a studio flat in Arlesey in July 2000. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar premises in Arlesey with 100 year plus lease were valued about £186,000. The mid-range ground rent payable was £65 invoiced per annum. The lease ended in 2083. Having 58 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 exclusive of fees.
Dr R Norbert acquired a first floor flat in Arlesey in July 1999. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Identical properties in Arlesey with a long lease were worth £250,000. The average ground rent payable was £50 invoiced yearly. The lease terminated in 2094. Given that there were 69 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.