The re-sale value of a leasehold property in Atherstone is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed in advance of the 80 year mark. Current legislation entitles Atherstone qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Atherstone with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Atherstone can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.
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 in-depth market knowledge procuring Atherstone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted correspondence with the freeholder of her first floor apartment in Atherstone, Rebecca initiated the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The lease extension completed in September 2011. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were contacted by Mrs Megan Thomas who, having acquired a basement apartment in Atherstone in October 1996. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical homes in Atherstone with a long lease were worth £260,000. The average ground rent payable was £50 billed every twelve months. The lease expired on 4 July 2097. Taking into account 71 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
Last Christmas we were phoned by Mr and Mrs. I Simon , who acquired a garden flat in Atherstone in November 1996. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparative homes in Atherstone with 100 year plus lease were in the region of £254,200. The average amount of ground rent was £60 invoiced annually. The lease ended on 28 May 2077. Given that there were 51 years remaining we calculated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of expenses.