The value of Tedburn St Mary leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the unexpired lease term is less than 80 years
Leasehold premises in Tedburn St Mary with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Regardless of whether you are a tenant or a freeholder in Tedburn St Mary,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tedburn St Mary valuers.
Subsequent to lengthy correspondence with the landlord of her ground floor flat in Tedburn St Mary, Kayleigh initiated the lease extension process as the eighty year deadline was quickly nearing. The lease extension was finalised in August 2007. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were approached by Mr and Mrs. D Green who, having completed a newly refurbished flat in Tedburn St Mary in March 1995. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Identical premises in Tedburn St Mary with a long lease were in the region of £270,000. The average ground rent payable was £65 invoiced quarterly. The lease concluded in 2094. Considering the 68 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.
Last Summer we were contacted by Dr Laura Bailey , who took over the lease of a one bedroom apartment in Tedburn St Mary in February 1996. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparable premises in Tedburn St Mary with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 billed monthly. The lease ended on 13 June 2083. Taking into account 57 years remaining we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 not including fees.