The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Arlesey may extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Arlesey lease extension. Putting off the costs now simply escalates the amount you will ultimately be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a landlord in Arlesey,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Arlesey valuers.
After protracted negotiations with the freeholder of her two bedroom apartment in Arlesey, Molly initiated the lease extension process just as the lease was coming close to the all-important 80-year threshold. The transaction completed in February 2011. The freeholder’s costs were kept to an absolute minimum.
Last Winter we were phoned by Mr and Mrs. Y Díaz , who completed a one bedroom flat in Arlesey in April 1998. The question was if we could approximate the price would be to prolong the lease by ninety years. Comparative homes in Arlesey with 100 year plus lease were valued around £227,800. The average ground rent payable was £45 billed annually. The lease terminated in 2090. Having 65 years outstanding we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.
Last Spring we were contacted by Dr Leah Brown , who bought a recently refurbished flat in Arlesey in August 2003. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparative flats in Arlesey with a long lease were in the region of £270,000. The average ground rent payable was £55 invoiced quarterly. The lease terminated in 2100. Having 75 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.