The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Cheltenham can extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Cheltenham lease extension. Postponing that expense now simply increases the premium you will ultimately have to pay for a lease extension.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| Chelsea 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. |
| 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. |
| 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:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Cheltenham can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Cheltenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the landlord of her leasehold apartment in Cheltenham, Niamh initiated the lease extension process just as the lease was nearing the crucial 80-year deadline. The transaction was concluded in February 2011. The freeholder’s costs were negotiated to approximately 700 GBP.
In 2009 we were e-mailed by Mr and Mrs. C White who, having completed a garden apartment in Cheltenham in May 2009. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical residencies in Cheltenham with a long lease were worth £290,000. The mid-range ground rent payable was £60 collected every twelve months. The lease lapsed on 7 January 2106. Having 80 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.
Last Spring we were contacted by Mr and Mrs. C Rogers , who purchased a garden apartment in Cheltenham in July 2010. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative flats in Cheltenham with 100 year plus lease were valued around £200,800. The mid-range ground rent payable was £65 collected quarterly. The lease concluded on 12 March 2086. Considering the 60 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of fees.