The only way is down when it comes to Uckfield lease terms. Uckfield leaseholds that have a remaining term less than than eighty years will reduce in market price at a rapid rate, and the cost of extending your lease will increase.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Uckfield 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.
Last October Theo, came critically close to the eighty-year threshold with the lease on his ground floor apartment in Uckfield. Having purchased his flat two decades ago, the length of the lease was of no concern. As luck would have it, he realised he would soon be paying an escalated premium for a lease extension. Theo extended the lease just ahead of time in September. Theo and the landlord who owned the flat above in the end settled on the final figure of £5,000 . If the lease had slid to less than eighty years, the price would have increased by a minimum £1,000.
Last November we were contacted by Dr Y Cook , who moved into a purpose-built apartment in Uckfield in May 2006. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative premises in Uckfield with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 billed quarterly. The lease lapsed in 2096. Given that there were 70 years left we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.
In 2012 we were e-mailed by Mr I Kelly who, having bought a basement flat in Uckfield in November 2008. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparable properties in Uckfield with an extended lease were valued about £223,400. The mid-range amount of ground rent was £60 collected every twelve months. The lease ran out on 27 May 2085. Considering the 59 years unexpired we approximated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 plus costs.