The value of Barlaston and Tittensor leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is less than eighty years
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancing solicitors that we work with procure Barlaston and Tittensor lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of lengthy correspondence with the landlord of her leasehold flat in Barlaston and Tittensor, Rebecca initiated the lease extension process just as the lease was nearing the critical eighty-year deadline. The transaction was finalised in January 2009. The landlord’s charges were restricted to under four hundred GBP.
In 2012 we were approached by Dr F Pérez who, having completed a recently refurbished flat in Barlaston and Tittensor in February 2010. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Similar flats in Barlaston and Tittensor with a long lease were valued around £280,000. The mid-range ground rent payable was £45 billed yearly. The lease finished on 5 April 2096. Having 70 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.
Last month we were approach by Mr Thomas Torres , who completed a garden apartment in Barlaston and Tittensor in November 1999. The dilemma was if we could approximate the price would be for a 90 year lease extension. Similar residencies in Barlaston and Tittensor with a long lease were in the region of £218,400. The mid-range ground rent payable was £60 invoiced yearly. The lease ended on 27 February 2085. Taking into account 59 years unexpired we estimated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 not including costs.