Askam In Furness residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
The conveyancing solicitors that we work with procure Askam In Furness lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of lengthy negotiations with the landlord of her one bedroom apartment in Askam In Furness, Jasmine commenced the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The transaction was finalised in July 2011. The landlord’s charges were kept to an absolute minimum.
In 2009 we were e-mailed by Mr and Mrs. B Taylor who, having completed a purpose-built apartment in Askam In Furness in March 2008. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparable flats in Askam In Furness with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 billed per annum. The lease end date was in 2101. Having 76 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.
Last Autumn we were e-mailed by Mr Matthew Rodríguez , who bought a studio flat in Askam In Furness in May 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Similar properties in Askam In Furness with a long lease were valued around £257,800. The mid-range ground rent payable was £65 collected every twelve months. The lease ran out in 2090. Having 65 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of legals.