The nearer a residential lease in Montpelier nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond 100 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer 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 primary reason why you should consider extending sooner rather than later. Many flat owners in Montpelier will meet the qualifying criteria; nevertheless a lawyer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
Lease extensions in Montpelier can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Montpelier lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jude was the the leasehold proprietor of a 2 bedroom flat in Montpelier being marketed with a lease of a few days over 59 years unexpired. Jude informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be payable on a lease extension were Jude to invoke his statutory right. Jude obtained expert advice and secured satisfactory resolution informally and sell the flat.
Mr and Mrs. P Smith purchased a one bedroom flat in Montpelier in January 2005. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative properties in Montpelier with 100 year plus lease were worth £174,200. The mid-range amount of ground rent was £55 invoiced monthly. The lease terminated in 2076. Taking into account 51 years remaining we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus fees.
Mr and Mrs. C Ward completed a first floor apartment in Montpelier in July 2007. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable premises in Montpelier with an extended lease were valued about £285,000. The mid-range ground rent payable was £45 collected monthly. The lease finished in 2096. Given that there were 71 years remaining we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.