The only way is down when it comes to Ingatestone lease terms. Ingatestone flats that have a residual term lower than eighty years will reduce in market price even faster, and the cost of extending your lease will increase.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Ingatestone can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Ingatestone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of unsuccessful discussions with the landlord of her basement flat in Ingatestone, Natalie initiated the lease extension process just as the lease was nearing the all-important 80-year deadline. The transaction completed in May 2008. The freeholder’s charges were kept to an absolute minimum.
Ms H Rose was assigned a lease of a one bedroom apartment in Ingatestone in June 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar flats in Ingatestone with 100 year plus lease were valued around £218,000. The average amount of ground rent was £45 billed annually. The lease expiry date was on 3 September 2088. Given that there were 63 years left we approximated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 not including legals.
Last year we were contacted by Mrs G Mitchell , who was assigned a lease of a purpose-built flat in Ingatestone in February 2008. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative residencies in Ingatestone with a long lease were valued around £265,000. The average ground rent payable was £50 billed yearly. The lease termination date was in 2099. Considering the 74 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.