The only way is down when it comes to Andover lease terms. Andover leaseholds that have a remaining term shorter than eighty years will drop in value at a rapid rate, and the cost to extend your lease will rise.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The lawyers that we work with undertake Andover 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 conveyancer we work with provide it.
After unsuccessful correspondence with the landlord of her first floor flat in Andover, Maisie commenced the lease extension process just as the lease was nearing the crucial 80-year deadline. The transaction completed in July 2013. The freeholder’s fees were kept to an absolute minimum.
Last Winter we were approach by Mr and Mrs. S Bailey , who acquired a garden flat in Andover in October 1999. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative premises in Andover with an extended lease were worth £203,200. The mid-range amount of ground rent was £65 billed yearly. The lease ran out on 7 April 2087. Taking into account 61 years left we estimated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of expenses.
Mr M Gray owned a ground floor flat in Andover in February 2000. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Similar residencies in Andover with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 collected per annum. The lease expired in 2098. Having 72 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.