Trimdon leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the existing lease drops lower than 80 years - otherwise a higher premium will be due. Leasehold owners in Trimdon will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are prescribed deadlines and procedures to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Trimdon,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Trimdon valuers.
Following protracted correspondence with the landlord of her purpose-built apartment in Trimdon, Kirsty initiated the lease extension process as the eighty year threshold was quickly approaching. The transaction was concluded in March 2008. The freeholder’s fees were negotiated to approximately five hundred pounds.
Mr and Mrs. C White purchased a purpose-built apartment in Trimdon in April 2003. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Identical properties in Trimdon with an extended lease were in the region of £245,000. The mid-range ground rent payable was £50 collected yearly. The lease elapsed on 13 November 2094. Having 68 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Mr L Williams moved into a one bedroom apartment in Trimdon in November 2003. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical premises in Trimdon with an extended lease were valued around £285,000. The mid-range amount of ground rent was £55 collected per annum. The lease lapsed in 2105. Considering the 79 years remaining we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.