The market value of a leasehold property in Flamborough depends on how long the lease has remaining. If it is close to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded ahead of the eighty year threshold. Leasehold Reform legislation entitles Flamborough qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Flamborough with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you better control over the value of your Flamborough leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Riley, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Flamborough. Having purchased his flat 19 years previously, the length of the lease was of little relevance. by good luck, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Riley extended the lease just in the nick of time in March. Riley and the freeholder via the management company ultimately agreed on the final figure of £6,000 . If he failed to meet the deadline, the premium would have escalated by at least £925.
In 2009 we were e-mailed by Mrs M Lefèvre who, having acquired a garden apartment in Flamborough in April 1997. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Identical properties in Flamborough with a long lease were worth £191,400. The mid-range amount of ground rent was £55 invoiced monthly. The lease ran out on 5 March 2079. Taking into account 54 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 plus professional charges.
In 2012 we were called by Dr Ryan Parker who, having moved into a studio apartment in Flamborough in April 2011. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable residencies in Flamborough with an extended lease were valued about £290,000. The mid-range ground rent payable was £45 billed every twelve months. The lease ran out on 8 January 2099. Taking into account 74 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.