With a residential leasehold premises in Andover, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than 80 years left. Residents in Andover with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When a lease has under eighty years left, under the relevant legislation the freeholder can calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is due.
It is generally considered that a property with over 100 years remaining is worth roughly 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 |
|---|---|
| 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. |
| 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; |
| 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. |
| 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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Lease extensions in Andover can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 in-depth market knowledge procuring Andover lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Aarav, started to get close to the 80-year mark with the lease on his studio apartment in Andover. In buying his property twenty years ago, the unexpired term was of little importance. Fortunately, he recognised he needed to take steps soon on a lease extension. Aarav extended the lease at the eleventh hour in April. Aarav and the landlord in the end agreed on a premium of £5,000 . If he had missed the deadline, the premium would have increased by a minimum £925.
Mr and Mrs. M Reed purchased a basement flat in Andover in October 2001. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Andover with 100 year plus lease were worth £227,800. The average amount of ground rent was £45 collected per annum. The lease concluded in 2091. Having 65 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.
In 2013 we were e-mailed by Mr F Lefèvre who, having acquired a recently refurbished apartment in Andover in February 2006. The dilemma was if we could approximate the price could be for a ninety year lease extension. Identical flats in Andover with an extended lease were worth £270,000. The mid-range ground rent payable was £55 collected per annum. The lease elapsed in 2102. Given that there were 76 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.