For those whose Quedgeley home is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Quedgeley,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Quedgeley valuers.
Off the back of protracted correspondence with the landlord of her leasehold apartment in Quedgeley, Alice commenced the lease extension process just as the lease was nearing the all-important eighty-year deadline. The transaction completed in October 2011. The landlord’s fees were kept to an absolute minimum.
Mr Liam Martin took over the lease of a one bedroom apartment in Quedgeley in November 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Identical properties in Quedgeley with an extended lease were worth £166,400. The average amount of ground rent was £60 invoiced annually. The lease ran out on 22 November 2079. Having 54 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of fees.
Last Winter we were contacted by Mr and Mrs. B Lee , who was assigned a lease of a one bedroom apartment in Quedgeley in July 2007. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar premises in Quedgeley with an extended lease were worth £227,800. The average ground rent payable was £45 billed quarterly. The lease finished on 5 January 2090. Given that there were 65 years left we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.