Montpelier leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Montpelier will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Engaging our service gives you better control over the value of your Montpelier leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Elijah, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Montpelier. Having bought his home two decades ago, the length of the lease was of no relevance. Thankfully, he noticed he would imminently be paying an escalated premium for a lease extension. Elijah extended the lease just under the wire in March. Elijah and the freeholder via the management company eventually settled on a premium of £5,000 . If he had missed the deadline, the figure would have gone up by a minimum £1,150.
Dr Noah Roux owned a garden apartment in Montpelier in October 1999. The question was if we could estimate the premium could be for a 90 year lease extension. Identical properties in Montpelier with an extended lease were valued about £210,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ended on 13 July 2106. Considering the 80 years unexpired we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.
In 2011 we were phoned by Mr and Mrs. B Hill who, having was assigned a lease of a basement flat in Montpelier in August 1997. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparable homes in Montpelier with a long lease were valued about £280,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease concluded in 2095. Having 69 years as a residual term we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.