Unfortunately that a Montpelier residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Montpelier property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining slips under 80 years, you will end up paying half of the property's 'marriage value' in addition to 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 Montpelier will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Montpelier with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a freeholder in Montpelier,the lease extension solicitors 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.
Last October Jonathan, came critically close to the 80-year mark with the lease on his purpose- built apartment in Montpelier. In buying his property two decades ago, the lease term was of minimal concern. Thankfully, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Jonathan was able to extend his lease just under the wire in July. Jonathan and the landlord who owned the flat above subsequently agreed on sum of £5,500 . If he failed to meet the deadline, the price would have escalated by a minimum £850.
Ms F Lefèvre took over the lease of a studio apartment in Montpelier in April 2005. The question was if we could approximate the premium could be to prolong the lease by 90 years. Comparable homes in Montpelier with a long lease were worth £280,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease finished on 2 September 2094. Given that there were 69 years remaining we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.
Last year we were contacted by Dr Callum Martínez , who was assigned a lease of a basement flat in Montpelier in January 2002. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable homes in Montpelier with 100 year plus lease were in the region of £216,000. The average ground rent payable was £60 billed quarterly. The lease elapsed in 2083. Given that there were 58 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus legals.