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 deflation being disguised by increases in the Arlesey property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term dips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Arlesey will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold properties in Arlesey with over 100 years unexpired 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Arlesey can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer 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 procuring Arlesey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Teddy, came dangerously near to the eighty-year mark with the lease on his ground floor apartment in Arlesey. Having purchased his home 19 years ago, the unexpired term was of minimal importance. Thankfully, he became aware that he needed to take action soon on a lease extension. Teddy extended the lease at the eleventh hour last March. Teddy and the landlord ultimately settled on sum of £6,000 . If the lease had dipped to less than eighty years, the amount would have gone up by at least £1,150.
Mr and Mrs. T Murphy bought a first floor flat in Arlesey in August 1995. The question was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparable homes in Arlesey with an extended lease were in the region of £254,200. The average amount of ground rent was £60 billed every twelve months. The lease came to a finish on 2 March 2077. Given that there were 51 years outstanding we approximated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of professional charges.
In 2012 we were phoned by Ms B Martinez who, having bought a studio apartment in Arlesey in October 1998. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable homes in Arlesey with an extended lease were valued around £215,600. The average ground rent payable was £45 billed per annum. The lease ran out in 2088. Having 62 years remaining we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including expenses.