The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Turvey have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your Turvey lease extension. Shelving that expense now simply escalates the premium you will ultimately have to pay to extend the lease.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Turvey,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Turvey valuers.
Eliot was the the leasehold proprietor of a conversion apartment in Turvey being sold with a lease of fraction over 59 years outstanding. Eliot informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Eliot to invoke his statutory right. Eliot procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2012 we were approached by Dr Adam Allen who, having moved into a purpose-built flat in Turvey in September 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Comparable properties in Turvey with a long lease were worth £235,200. The average ground rent payable was £45 billed per annum. The lease lapsed on 25 April 2092. Having 66 years as a residual term we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
In 2009 we were phoned by Dr M Campbell who, having was assigned a lease of a one bedroom apartment in Turvey in October 1995. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparable residencies in Turvey with an extended lease were in the region of £275,000. The average ground rent payable was £55 invoiced annually. The lease end date was in 2103. Having 77 years left we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.