The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Temple Fortune may extend the lease for a further ninety years in accordance with legislation. Do give careful consideration before delaying your Temple Fortune lease extension. Shelving that expense today simply escalates the amount you will ultimately have to pay for a lease extension.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a freeholder in Temple Fortune,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Temple Fortune valuers.
Two years ago Evan, came perilously close to the eighty-year mark with the lease on his two bedroom flat in Temple Fortune. In buying his property two decades ago, the unexpired term was of no concern. Luckily, he became aware that he would soon be paying way over the odds for a lease extension. Evan arranged for a lease extension just in the nick of time last July. Evan and the landlord eventually settled on the final figure of £5,500 . If the lease had fallen below eighty years, the premium would have increased by at least £1,025.
In 2012 we were phoned by Dr C Garcia who, having took over the lease of a purpose-built flat in Temple Fortune in March 2005. The question was if we could approximate the premium would be for a 90 year lease extension. Comparable properties in Temple Fortune with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease expired on 13 November 2104. Given that there were 78 years unexpired we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Temple Fortune premises is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case was in relation to 1 flat. The unexpired term as at the valuation date was 76 years.