The closer a residential lease in Arlesey nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, in excess of 125 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Arlesey will meet the qualifying criteria; however a lawyer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Lease extensions in Arlesey can be a difficult process. We recommend you obtain professional help from a conveyancer 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.
Jayden owned a conversion apartment in Arlesey on the market with a lease of just over 61 years remaining. Jayden on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jayden to exercise his statutory right. Jayden obtained expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Last Autumn we were approach by Mr R Brown , who took over the lease of a one bedroom flat in Arlesey in August 1998. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical residencies in Arlesey with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease came to a finish in 2100. Given that there were 75 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
Last Spring we were called by Ms E Allen , who bought a one bedroom flat in Arlesey in July 2012. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative properties in Arlesey with 100 year plus lease were in the region of £173,800. The mid-range ground rent payable was £65 billed every twelve months. The lease elapsed on 2 November 2080. Considering the 55 years unexpired we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including professional charges.