Montpelier leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Montpelier will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a freeholder in Montpelier,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 Montpelier valuers.
In the wake of 9 months of unsuccessful negotiations with the landlord of her first floor apartment in Montpelier, Ashleigh started the lease extension process just as the lease was coming close to the all-important 80-year threshold. The legal work was concluded in April 2005. The freeholder’s fees were negotiated to about 500 GBP.
Last Summer we were contacted by Mr and Mrs. N Pérez , who took over the lease of a ground floor apartment in Montpelier in September 1995. We are asked if we could approximate the price could be for a ninety year lease extension. Similar premises in Montpelier with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 collected monthly. The lease finished on 2 April 2096. Having 70 years outstanding we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.
Dr Omar Wright moved into a studio apartment in Montpelier in January 2012. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical flats in Montpelier with 100 year plus lease were in the region of £223,400. The mid-range ground rent payable was £60 billed yearly. The lease expired in 2085. Having 59 years left we estimated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 plus professional charges.