Anston leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Anston residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Anston you really ought to check if your lease has between 70 and 90 years left. There are good reasons why a Anston leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is put in place without delay
It is generally accepted that a property with over 100 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 worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Anston leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Nathaniel was the the leasehold proprietor of a studio apartment in Anston on the market with a lease of a little over fifty eight years remaining. Nathaniel informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.
In 2010 we were called by Mr and Mrs. B Lefèvre who, having owned a one bedroom apartment in Anston in August 1996. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Identical flats in Anston with 100 year plus lease were valued around £257,800. The mid-range ground rent payable was £65 collected monthly. The lease concluded in 2090. Having 65 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 plus legals.
In 2013 we were e-mailed by Dr Sian Watson who, having took over the lease of a studio apartment in Anston in March 2003. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Similar properties in Anston with a long lease were worth £191,400. The average amount of ground rent was £55 billed yearly. The lease concluded on 17 February 2079. Taking into account 54 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 not including fees.