The only way is down when it comes to Ulverston lease terms. Ulverston leaseholds that have a residual term lower than eighty years will reduce in value even faster, and the cost of extending your lease will rise.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately 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 many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire 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. |
Retaining our service gives you better control over the value of your Ulverston leasehold, as your property will be more valuable and marketable 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.
Two years ago Jack, started to get near to the eighty-year threshold with the lease on his ground floor flat in Ulverston. In buying his flat 18 years ago, the unexpired term was of minimal interest. Luckily, he realised he needed to take action soon on a lease extension. Jack arranged for a lease extension at the eleventh hour in August. Jack and the freeholder ultimately settled on the final figure of £5,500 . If the lease had gone lower than 80 years, the figure would have escalated by a minimum £1,050.
Last Spring we were contacted by Mr and Mrs. D Roberts , who completed a purpose-built apartment in Ulverston in September 2000. The dilemma was if we could estimate the price would be to extend the lease by ninety years. Comparative premises in Ulverston with a long lease were valued about £265,000. The average amount of ground rent was £50 invoiced monthly. The lease elapsed on 12 June 2098. Considering the 74 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
In 2009 we were called by Mr W Clark who, having was assigned a lease of a ground floor apartment in Ulverston in September 2001. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Ulverston with 100 year plus lease were worth £166,400. The mid-range amount of ground rent was £60 billed quarterly. The lease ran out on 22 July 2078. Considering the 54 years remaining we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of professional charges.