Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Ingatestone. Clearly, the length of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the residence needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Qualifying leaseholders in Ingatestone have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give careful deliberation before delaying your Ingatestone lease extension. Holding off that expense now only increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Ingatestone,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ingatestone valuers.
William was the the leasehold proprietor of a conversion apartment in Ingatestone on the market with a lease of a few days over fifty eight years unexpired. William informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were William to exercise his statutory right. William obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
In 2011 we were called by Mrs R Díaz who, having completed a one bedroom apartment in Ingatestone in September 1997. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Similar homes in Ingatestone with an extended lease were valued about £280,000. The average ground rent payable was £55 collected quarterly. The lease expired in 2103. Given that there were 78 years remaining we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.
Last year we were e-mailed by Dr G Dupont , who was assigned a lease of a garden flat in Ingatestone in July 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Ingatestone with an extended lease were worth £186,000. The mid-range ground rent payable was £65 collected monthly. The lease ran out in 2083. Considering the 58 years remaining we estimated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 plus fees.