Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Albrighton. Clearly, the length of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the residence has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Albrighton have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give careful consideration before putting off your Albrighton lease extension. Putting off that expense now simply increases the price you will eventually incur for a lease extension
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| 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 |
| 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. |
Retaining our service will provide you enhanced control over the value of your Albrighton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the freeholder of her garden apartment in Albrighton, Jessica started the lease extension process as the eighty year deadline was swiftly nearing. The lease extension was concluded in April 2010. The landlord’s charges were kept to an absolute minimum.
Last Spring we were approach by Mr and Mrs. J Taylor , who completed a one bedroom flat in Albrighton in August 1998. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparative flats in Albrighton with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired on 3 February 2100. Having 74 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.
Last Winter we were called by Mr and Mrs. N Mason , who moved into a ground floor apartment in Albrighton in March 2012. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparable flats in Albrighton with a long lease were worth £248,000. The average amount of ground rent was £65 billed annually. The lease came to a finish in 2089. Having 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of professional charges.