Unfortunately that a Anlaby residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Anlaby property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. The majority of flat owners in Anlaby will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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; |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Anlaby,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Anlaby valuers.
Trailing unsuccessful discussions with the landlord of her studio flat in Anlaby, Isobel started the lease extension process as the eighty year mark was quickly coming. The transaction was finalised in October 2007. The landlord’s fees were restricted to below 550 pounds.
In 2012 we were e-mailed by Mrs Alice Ricardo who, having bought a recently refurbished flat in Anlaby in February 2004. The dilemma was if we could approximate the price could be to extend the lease by ninety years. Comparative residencies in Anlaby with an extended lease were valued around £233,200. The mid-range amount of ground rent was £60 collected annually. The lease concluded in 2087. Taking into account 61 years left we calculated the premium to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of costs.
Mr and Mrs. H Rodríguez acquired a purpose-built apartment in Anlaby in March 2007. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Anlaby with a long lease were worth £171,800. The mid-range ground rent payable was £55 billed quarterly. The lease terminated in 2076. Taking into account 50 years remaining we approximated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of fees.