The closer a residential lease in Montpelier gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 125 years to run then this decrease may be negligible however there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Most flat owners in Montpelier will qualify for this right; however a lawyer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with procure Montpelier 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 conveyancer we work with provide it.
Last Winter Aiden, started to get near to the eighty-year threshold with the lease on his basement apartment in Montpelier. In buying his home two decades ago, the length of the lease was of little relevance. by good luck, he realised he needed to take steps soon on Extending the lease. Aiden was able to extend his lease at the eleventh hour last July. Aiden and the landlord who owned the flat above in the end agreed on sum of £5,000 . If the lease had gone below 80 years, the price would have become more costly by at least £850.
In 2013 we were contacted by Mr and Mrs. D Bailey who, having bought a studio apartment in Montpelier in April 2003. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative residencies in Montpelier with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease terminated in 2100. Taking into account 75 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.
Mr and Mrs. L Anderson bought a one bedroom flat in Montpelier in May 2003. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative residencies in Montpelier with an extended lease were valued around £250,400. The average ground rent payable was £65 collected every twelve months. The lease expired on 27 March 2089. Having 64 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 not including legals.