The only way is down when it comes to Tedburn St Mary lease terms. Tedburn St Mary properties that have a residual term fewer than 80 years will de-escalate in market price at a rapid rate, and the cost of extending your lease will rise.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be worth the same as 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Tedburn St Mary leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Connor, started to get close to the 80-year threshold with the lease on his studio apartment in Tedburn St Mary. Having purchased his property twenty years ago, the length of the lease was of no significance. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Connor arranged for a lease extension just under the wire last June. Connor and the landlord who owned the flat above eventually settled on a premium of £5,000 . If the lease had dropped to less than 80 years, the premium would have become more costly by a minimum £950.
Last year we were contacted by Dr P Scott , who owned a studio apartment in Tedburn St Mary in April 2000. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable premises in Tedburn St Mary with 100 year plus lease were worth £225,800. The mid-range ground rent payable was £60 collected every twelve months. The lease terminated in 2086. Taking into account 60 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £25,700 and £29,600 plus costs.
Mr and Mrs. R Hall took over the lease of a garden apartment in Tedburn St Mary in July 2004. We are asked if we could estimate the premium would be for a ninety year lease extension. Identical homes in Tedburn St Mary with a long lease were worth £210,000. The mid-range amount of ground rent was £50 billed monthly. The lease termination date was in 2106. Taking into account 80 years left we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.