The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Banstead may extend the lease for a further ninety years under statute. Please give careful consideration before delaying your Banstead lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend the lease.
Leasehold premises in Banstead with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Banstead,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Banstead valuers.
In the wake of 6 months of lengthy correspondence with the freeholder of her studio apartment in Banstead, Caitlin started the lease extension process just as her lease was approaching the all-important 80-year deadline. The legal work was concluded in November 2015. The freeholder’s costs were negotiated to slightly above 450 pounds.
Dr L Lewis moved into a one bedroom apartment in Banstead in April 2004. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparative homes in Banstead with a long lease were worth £215,600. The mid-range ground rent payable was £45 collected monthly. The lease ran out in 2087. Having 62 years remaining we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of expenses.
An example of a Lease Extension decision for a Banstead property is 33 The Maisonettes Alberta Avenue in June 2014. the Tribunal decided that the premium payable for the grant of a new lease be the sum of £20,680 (Twenty Thousand six hundred and eighty pounds). This case affected 1 flat. The unexpired term as at the valuation date was 60.43 years.