With a domestic leasehold premises in Arlesey, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Anyone in Arlesey with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has fewer than 80 years left, under the relevant statute the freeholder is entitled to calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Arlesey with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Arlesey leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Callum owned a studio flat in Arlesey being sold with a lease of a little over fifty eight years unexpired. Callum on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Callum to invoke his statutory right. Callum obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2013 we were phoned by Mr and Mrs. G Richardson who, having acquired a one bedroom apartment in Arlesey in June 1998. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical premises in Arlesey with a long lease were worth £198,400. The average amount of ground rent was £65 collected quarterly. The lease termination date was in 2085. Given that there were 59 years outstanding we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus legals.
Dr George Roberts owned a ground floor flat in Arlesey in June 2009. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar residencies in Arlesey with an extended lease were in the region of £255,000. The mid-range amount of ground rent was £50 billed per annum. The lease came to a finish in 2096. Taking into account 70 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.