Appleby In Westmorland leases on residential properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Appleby In Westmorland will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In some situations you may not be entitled. There are prescribed timetables and procedures to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
The conveyancing solicitors that we work with procure Appleby In Westmorland 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 lawyer we work with provide it.
Last October Noah, came perilously close to the 80-year threshold with the lease on his purpose- built apartment in Appleby In Westmorland. Having purchased his flat 19 years previously, the lease term was of minimal significance. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Noah arranged for a lease extension just under the wire last March. Noah and the landlord eventually agreed on an amount of £5,500 . If the lease had dropped lower than eighty years, the sum would have increased by at least £1,000.
In 2012 we were called by Ms Chantelle Walker who, having took over the lease of a one bedroom apartment in Appleby In Westmorland in January 2009. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative premises in Appleby In Westmorland with a long lease were in the region of £186,000. The average ground rent payable was £65 billed per annum. The lease ended on 21 November 2084. Taking into account 58 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 plus legals.
Last year we were approach by Dr Hunter Rivera , who moved into a basement apartment in Appleby In Westmorland in January 2008. The dilemma was if we could approximate the price could be to extend the lease by an additional years. Similar flats in Appleby In Westmorland with a long lease were in the region of £250,000. The average ground rent payable was £50 invoiced annually. The lease expiry date was in 2095. Given that there were 69 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.