Repton leases on residential properties are gradually losing value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Repton will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some cases you may not qualify. There are prescribed deadlines and steps to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 freeholder in Repton,the lease extension lawyers 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 Repton valuers.
Last year Benjamin, started to get near to the eighty-year threshold with the lease on his one bedroom apartment in Repton. In buying his property two decades ago, the unexpired term was of minimal interest. Thankfully, he noticed he would soon be paying way over the odds for a lease extension. Benjamin extended the lease at the eleventh hour last July. Benjamin and the landlord eventually agreed on sum of £6,000 . If he not met the deadline, the figure would have gone up by at least £1,075.
In 2014 we were called by Dr I Lefèvre who, having purchased a purpose-built apartment in Repton in May 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable flats in Repton with a long lease were valued about £265,000. The mid-range ground rent payable was £50 billed every twelve months. The lease finished on 27 August 2098. Given that there were 73 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
Dr P François purchased a first floor apartment in Repton in May 1997. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable homes in Repton with a long lease were valued about £264,000. The mid-range ground rent payable was £60 invoiced yearly. The lease came to a finish on 21 June 2078. Considering the 53 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 plus fees.