With a residential leasehold property in Astwood Bank, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Residents in Astwood Bank with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once the lease term has fewer than eighty years outstanding, under the current Act the freeholder can calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
| 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 |
Lease extensions in Astwood Bank can be a difficult process. We recommend you procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Astwood Bank lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the freeholder of her basement flat in Astwood Bank, Louise initiated the lease extension process just as her lease was approaching the crucial 80-year deadline. The legal work completed in November 2015. The landlord’s fees were kept to an absolute minimum.
Mr Henry Clarke owned a studio flat in Astwood Bank in August 2002. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparable properties in Astwood Bank with an extended lease were valued around £260,000. The mid-range ground rent payable was £50 invoiced per annum. The lease elapsed on 21 July 2097. Having 72 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
In 2012 we were e-mailed by Mr and Mrs. N Mitchell who, having owned a first floor apartment in Astwood Bank in January 2010. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparative premises in Astwood Bank with an extended lease were worth £256,600. The mid-range amount of ground rent was £60 collected quarterly. The lease concluded on 15 April 2077. Having 52 years outstanding we estimated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 plus expenses.