With a long leasehold property in Robertsbridge, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are fewer than 80 years left. Residents in Robertsbridge with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. Once a lease has less than eighty years left, under the relevant Act the landlord is entitled to calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Robertsbridge leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Milo owned a studio flat in Robertsbridge on the market with a lease of just over 59 years outstanding. Milo on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Milo to exercise his statutory right. Milo obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Last Autumn we were e-mailed by Mr and Mrs. D James , who bought a garden flat in Robertsbridge in October 2001. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Comparable properties in Robertsbridge with an extended lease were valued about £237,600. The mid-range ground rent payable was £45 billed monthly. The lease lapsed in 2092. Considering the 67 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 not including expenses.
In 2012 we were contacted by Dr P Simon who, having moved into a first floor flat in Robertsbridge in June 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Robertsbridge with a long lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease concluded on 23 March 2103. Considering the 78 years remaining we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.