Unfortunately that a Askam In Furness residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Askam In Furness property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining drops under 80 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. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Askam In Furness will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations 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 for the duration of the formalities.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Askam In Furness,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Askam In Furness valuers.
In recent months John, started to get close to the 80-year mark with the lease on his leasehold flat in Askam In Furness. In buying his property 19 years ago, the lease term was of minimal importance. Thankfully, he realised he needed to take action soon on a lease extension. John extended the lease just under the wire in August. John and the landlord eventually agreed on sum of £5,000 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £900.
In 2011 we were approached by Mrs Kirsty Roux who, having took over the lease of a first floor flat in Askam In Furness in May 1995. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar flats in Askam In Furness with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 collected quarterly. The lease concluded on 2 August 2104. Considering the 79 years unexpired we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.
Mr and Mrs. V Bell acquired a purpose-built apartment in Askam In Furness in July 1997. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Askam In Furness with a long lease were worth £275,000. The average ground rent payable was £65 collected quarterly. The lease lapsed on 10 August 2093. Taking into account 68 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.