Banwell residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
Leasehold residencies in Banwell with over one hundred years unexpired 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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. |
Lease extensions in Banwell can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in lease extensions.
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 dealing with Banwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful discussions with the freeholder of her first floor apartment in Banwell, Abbie started the lease extension process as the 80 year threshold was fast approaching. The legal work completed in November 2009. The freeholder’s fees were restricted to approximately 700 GBP.
Mr and Mrs. I Parker completed a basement apartment in Banwell in April 1998. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Similar homes in Banwell with an extended lease were valued around £260,000. The mid-range amount of ground rent was £50 billed monthly. The lease ran out in 2097. Considering the 72 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
Last Spring we were e-mailed by Mr and Mrs. J King , who bought a purpose-built apartment in Banwell in November 2003. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar homes in Banwell with 100 year plus lease were in the region of £261,600. The average amount of ground rent was £60 invoiced per annum. The lease came to a finish in 2077. Considering the 52 years unexpired we approximated the premium to the landlord for the lease extension to be between £39,000 and £45,000 exclusive of fees.