Montpelier leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Montpelier will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain cases you may not be entitled. There are prescribed timetables and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Montpelier with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
The conveyancers 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 conveyancing solicitor we work with provide it.
In the wake of 6 months of unsuccessful discussions with the landlord of her two bedroom apartment in Montpelier, Rosie commenced the lease extension process just as the lease was approaching the all-important eighty-year deadline. The lease extension completed in September 2009. The landlord’s costs were kept to an absolute minimum.
In 2013 we were e-mailed by Ms Amy Morris who, having purchased a recently refurbished flat in Montpelier in March 2009. We are asked if we could estimate the price could be to prolong the lease by 90 years. Comparative homes in Montpelier with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 billed annually. The lease came to a finish on 13 June 2100. Given that there were 76 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
In 2010 we were approached by Mr Harvey Mason who, having moved into a ground floor apartment in Montpelier in August 2006. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Similar residencies in Montpelier with 100 year plus lease were in the region of £257,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease lapsed in 2089. Considering the 65 years unexpired we calculated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 plus costs.