As the the remaining lease term of a Montpelier residential lease decreases so does its value and therefore the value of your property. Where the residual term has, over 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty 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 primary reason why you should extend the lease sooner than later. Many flat owners in Montpelier will qualify for this right; nevertheless a lawyer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Montpelier with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Montpelier,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Montpelier valuers.
Off the back of unsuccessful correspondence with the landlord of her purpose-built flat in Montpelier, Megan commenced the lease extension process just as the lease was approaching the all-important 80-year deadline. The transaction was concluded in November 2008. The landlord’s charges were restricted to below 650 pounds.
In 2011 we were approached by Mrs Jasmine Moreau who, having moved into a basement flat in Montpelier in April 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Montpelier with 100 year plus lease were valued about £265,200. The mid-range ground rent payable was £65 invoiced yearly. The lease ended on 25 March 2092. Given that there were 66 years unexpired we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus professional charges.
Last Summer we were called by Mr and Mrs. W Young , who owned a one bedroom flat in Montpelier in November 2006. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar premises in Montpelier with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 collected annually. The lease finished on 14 June 2081. Considering the 55 years outstanding we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including expenses.