The only way is down when it comes to Handforth lease terms. Handforth flats that have a lease term lower than 80 years will de-escalate in value at a rapid rate, and the cost of extending your lease will increase.
Leasehold properties in Handforth with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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; |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Handforth 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.
Last October Matthew, came very near to the 80-year mark with the lease on his leasehold flat in Handforth. In buying his flat 18 years previously, the unexpired term was of no bearing. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Matthew arranged for a lease extension just ahead of time last August. Matthew and the freeholder via the management company subsequently settled on the final figure of £5,500 . If the lease had fallen to less than 80 years, the figure would have increased by a minimum £900.
Dr Harvey Leroy acquired a garden flat in Handforth in April 2005. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical properties in Handforth with a long lease were valued around £290,000. The mid-range amount of ground rent was £45 billed annually. The lease ended on 9 April 2098. Having 72 years as a residual term we approximated the premium to the landlord for the lease extension to be within £11,400 and £13,200 not including professional charges.
Mr Alfie Lewis owned a one bedroom flat in Handforth in March 2002. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Comparable properties in Handforth with 100 year plus lease were in the region of £233,200. The mid-range amount of ground rent was £60 collected quarterly. The lease terminated on 19 April 2087. Taking into account 61 years left we approximated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 not including legals.