The market value of Cross Hands leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the unexpired lease term is less than 80 years
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
The lawyers that we work with handle Cross Hands 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.
Benjamin was the the leasehold proprietor of a conversion flat in Cross Hands on the market with a lease of a little over 61 years outstanding. Benjamin informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert legal guidance and secured satisfactory resolution informally and sell the flat.
Mr and Mrs. I Gómez took over the lease of a one bedroom flat in Cross Hands in March 1999. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Similar premises in Cross Hands with an extended lease were in the region of £261,600. The mid-range amount of ground rent was £60 billed annually. The lease ended on 25 August 2077. Given that there were 52 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 exclusive of costs.
In 2014 we were phoned by Mr and Mrs. N Ramírez who, having took over the lease of a purpose-built apartment in Cross Hands in August 2006. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Identical premises in Cross Hands with 100 year plus lease were in the region of £218,000. The mid-range ground rent payable was £45 collected per annum. The lease ended in 2088. Given that there were 63 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 plus expenses.