The closer a domestic lease in Binfield nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Binfield will qualify for this right; however a conveyancer will be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with procure Binfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last year Jamie, started to get close to the eighty-year mark with the lease on his leasehold flat in Binfield. Having purchased his property 18 years ago, the unexpired term was of little significance. Luckily, he became aware that he would soon be paying an inflated amount for a lease extension. Jamie arranged for a lease extension at the eleventh hour last January. Jamie and the freeholder ultimately settled on the final figure of £5,500 . If he not met the deadline, the amount would have gone up by at least £1,025.
In 2014 we were e-mailed by Mr and Mrs. H Dupont who, having completed a one bedroom apartment in Binfield in June 2004. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative properties in Binfield with an extended lease were valued about £208,600. The mid-range amount of ground rent was £60 collected per annum. The lease ended on 4 May 2082. Considering the 57 years as a residual term we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of expenses.
In 2009 we were e-mailed by Dr P Thompson who, having was assigned a lease of a purpose-built apartment in Binfield in September 2010. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar properties in Binfield with an extended lease were valued about £200,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease lapsed in 2102. Having 77 years outstanding we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.