When it comes to residential leasehold premises in Werrington, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Leasehold owners in Werrington with a lease nearing 81 years remaining should seriously think of extending it without delay. Once a lease has below 80 years remaining, under the relevant legislation the freeholder is entitled to calculate and charge a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Regardless of whether you are a tenant or a landlord in Werrington,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Werrington valuers.
During the course of the last few months Archie, started to get near to the eighty-year threshold with the lease on his first floor apartment in Werrington. In buying his property two decades ago, the lease term was of no relevance. Thankfully, he realised he needed to take steps soon on Extending the lease. Archie was able to extend his lease at the eleventh hour in January. Archie and the landlord in the end settled on the final figure of £6,000 . If the lease had dipped lower than 80 years, the premium would have increased by a minimum £900.
Last Spring we were approach by Mr and Mrs. J Phillips , who took over the lease of a one bedroom apartment in Werrington in February 1996. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical homes in Werrington with 100 year plus lease were valued about £206,200. The mid-range ground rent payable was £55 invoiced every twelve months. The lease concluded in 2082. Having 56 years outstanding we calculated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including expenses.
Last Christmas we were e-mailed by Mr and Mrs. C Sharif , who completed a newly refurbished flat in Werrington in January 1996. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative residencies in Werrington with an extended lease were worth £300,000. The average ground rent payable was £50 invoiced every twelve months. The lease end date was in 2102. Taking into account 76 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.