As the the remaining lease term of a Montpelier domestic lease lessens so does its value and therefore the value of your property. If the lease has, more than 125 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending sooner than later. Many flat owners in Montpelier will qualify for this right; nevertheless a conveyancer can advise whether you are eligible 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.
Leasehold properties in Montpelier with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Montpelier,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Montpelier valuers.
Off the back of protracted discussions with the landlord of her one bedroom apartment in Montpelier, Chloe started the lease extension process just as the lease was coming close to the crucial eighty-year mark. The transaction was finalised in May 2010. The freeholder’s costs were kept to an absolute minimum.
Ms K Cook owned a studio flat in Montpelier in March 1996. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative flats in Montpelier with an extended lease were in the region of £267,600. The average amount of ground rent was £65 collected per annum. The lease finished on 16 May 2092. Given that there were 67 years left we calculated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 not including professional charges.
Mr Nathan Morris took over the lease of a one bedroom apartment in Montpelier in October 2010. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Similar premises in Montpelier with 100 year plus lease were valued about £206,200. The average ground rent payable was £60 collected every twelve months. The lease ended in 2081. Taking into account 56 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.