The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Flamborough may extend the lease for a further ninety years under legislation. Please give careful consideration before delaying your Flamborough lease extension. Postponing the costs today simply increases the amount you will eventually have to pay to extend the lease.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence 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 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
The lawyers that we work with procure Flamborough 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 lawyer we work with provide it.
Two years ago Cameron, started to get near to the 80-year mark with the lease on his ground floor apartment in Flamborough. Having purchased his flat 18 years ago, the lease term was of minimal importance. by good luck, he noticed he needed to take steps soon on Extending the lease. Cameron extended the lease just in the nick of time in September. Cameron and the freeholder eventually agreed on a premium of £6,000 . If he had missed the deadline, the amount would have escalated by at least £1,025.
Last Autumn we were e-mailed by Mr and Mrs. C Michel , who bought a recently refurbished apartment in Flamborough in July 2011. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Flamborough with an extended lease were worth £181,600. The average amount of ground rent was £55 billed quarterly. The lease came to a finish on 6 November 2077. Given that there were 52 years unexpired we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including costs.
In 2012 we were called by Mr and Mrs. M Anderson who, having completed a one bedroom flat in Flamborough in September 2005. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Flamborough with a long lease were worth £290,000. The mid-range amount of ground rent was £45 collected per annum. The lease end date was in 2097. Given that there were 72 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.