Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Almondsbury. Clearly, the term of lease remaining reduces over time. This may slip by relatively unnoticed when the residence needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Almondsbury have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give careful attention before putting off your Almondsbury lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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; |
| Godiva Mortgages | 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. |
| 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. |
| 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. |
Lease extensions in Almondsbury can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Almondsbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Oscar, started to get near to the eighty-year threshold with the lease on his basement flat in Almondsbury. Having bought his flat two decades ago, the length of the lease was of little importance. Luckily, he recognised he needed to take action soon on Extending the lease. Oscar arranged for a lease extension just under the wire last August. Oscar and the landlord subsequently settled on an amount of £5,000 . If the lease had descended to less than 80 years, the price would have become more costly by at least £1,025.
Last September we were approach by Mr R Ali , who moved into a purpose-built flat in Almondsbury in February 2008. The question was if we could estimate the premium could be for a 90 year lease extension. Comparative premises in Almondsbury with a long lease were in the region of £254,200. The average ground rent payable was £60 collected yearly. The lease expired in 2076. Considering the 51 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 not including professional charges.
In 2012 we were e-mailed by Dr A Norbert who, having took over the lease of a first floor flat in Almondsbury in September 2010. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical residencies in Almondsbury with a long lease were valued about £210,600. The mid-range ground rent payable was £45 invoiced every twelve months. The lease expired on 4 June 2087. Taking into account 62 years remaining we estimated the premium to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of fees.