Banwell leases on domestic properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. Leasehold owners in Banwell will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Irrespective of whether you are a tenant or a landlord in Banwell,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 Banwell valuers.
Sebastian owned a 2 bedroom apartment in Banwell being marketed with a lease of a few days over sixty years left. Sebastian on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Christmas we were e-mailed by Ms I Cox , who took over the lease of a first floor apartment in Banwell in July 2002. The question was if we could estimate the price could be for a 90 year lease extension. Identical properties in Banwell with a long lease were in the region of £227,800. The mid-range amount of ground rent was £45 invoiced annually. The lease finished in 2091. Taking into account 65 years outstanding we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.
In 2010 we were approached by Dr P Laurent who, having completed a recently refurbished flat in Banwell in September 1996. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparative properties in Banwell with 100 year plus lease were worth £275,000. The average ground rent payable was £55 collected monthly. The lease finished on 22 October 2102. Taking into account 76 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.