Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Tedburn St Mary. Clearly, the term of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the property has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Tedburn St Mary have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Do give careful deliberation before delaying your Tedburn St Mary lease extension. Putting off the cost now simply increases the price you will eventually incur to extend your lease
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Tedburn St Mary 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.
Jayden was the the leasehold owner of a studio apartment in Tedburn St Mary being sold with a lease of fraction over 72 years outstanding. Jayden on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Jayden to exercise his statutory right. Jayden obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2011 we were called by Mr and Mrs. I Ramírez who, having took over the lease of a basement flat in Tedburn St Mary in April 2005. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Tedburn St Mary with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed monthly. The lease expiry date was in 2102. Considering the 78 years left we estimated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 plus costs.
In 2010 we were contacted by Mr Callum Green who, having moved into a garden apartment in Tedburn St Mary in March 2003. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Comparative residencies in Tedburn St Mary with a long lease were valued around £267,600. The average amount of ground rent was £65 billed annually. The lease terminated on 24 June 2091. Having 67 years remaining we approximated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of costs.