The value of Bollington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the unexpired lease term is below than eighty years
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Bollington 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 conveyancer we work with provide it.
Last year Freddie, came very near to the eighty-year mark with the lease on his leasehold apartment in Bollington. Having bought his home twenty years previously, the length of the lease was of minimal importance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Freddie arranged for a lease extension just in the nick of time in August. Freddie and the landlord who owned the flat above in the end settled on an amount of £5,000 . If the lease had slid to less than 80 years, the premium would have increased by a minimum £1,125.
Dr H Murphy moved into a basement flat in Bollington in August 1996. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Comparative homes in Bollington with a long lease were worth £275,000. The mid-range amount of ground rent was £65 collected yearly. The lease finished in 2094. Having 68 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including expenses.
Dr J Vincent purchased a basement apartment in Bollington in October 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar premises in Bollington with a long lease were in the region of £208,600. The mid-range amount of ground rent was £60 billed annually. The lease end date was on 7 October 2083. Having 57 years outstanding we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including costs.