Almondsbury leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the current lease dips under eighty years - otherwise a higher amount will be payable. Leasehold owners in Almondsbury will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and formalities to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Almondsbury with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Almondsbury,the lease extension lawyers 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 Almondsbury valuers.
During the course of the last few months Lewis, started to get near to the 80-year mark with the lease on his first floor apartment in Almondsbury. Having bought his property 18 years ago, the length of the lease was of little significance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Lewis extended the lease at the eleventh hour last September. Lewis and the landlord in the end settled on the final figure of £6,000 . If he failed to meet the deadline, the figure would have gone up by at least £1,075.
Last Autumn we were approach by Dr Katherine Davies , who completed a garden flat in Almondsbury in November 1995. The question was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparative premises in Almondsbury with a long lease were valued about £256,600. The mid-range amount of ground rent was £60 billed quarterly. The lease ran out in 2076. Given that there were 52 years as a residual term we estimated the premium to the landlord to extend the lease to be between £39,000 and £45,000 plus expenses.
Mr and Mrs. C Cooper was assigned a lease of a ground floor flat in Almondsbury in August 2002. The question was if we could estimate the premium would be for a ninety year extension to my lease. Identical residencies in Almondsbury with an extended lease were valued about £218,000. The average amount of ground rent was £45 invoiced yearly. The lease end date was on 5 August 2087. Taking into account 63 years unexpired we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of fees.