The value of Barton le Willows leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the unexpired lease term is below than 80 years
Leasehold properties in Barton le Willows with over one hundred years remaining on the lease are sometimes regarded as a ‘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 upside in buying the reversionary interest unless savings on ground rent and maintenance 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 Barton le Willows can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Barton le Willows lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Daniel, started to get near to the 80-year mark with the lease on his ground floor flat in Barton le Willows. Having purchased his home twenty years ago, the unexpired term was of minimal bearing. Fortunately, he realised he would soon be paying an inflated amount for a lease extension. Daniel was able to extend his lease just under the wire in June. Daniel and the landlord ultimately settled on sum of £5,000 . If the lease had gone below 80 years, the price would have gone up by a minimum £1,100.
Last Winter we were contacted by Ms Ashleigh Jackson , who purchased a purpose-built flat in Barton le Willows in June 1996. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Similar residencies in Barton le Willows with an extended lease were valued about £235,200. The mid-range amount of ground rent was £45 collected monthly. The lease ran out in 2092. Having 66 years unexpired we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.
In 2013 we were approached by Mr and Mrs. M Smith who, having owned a ground floor apartment in Barton le Willows in June 1996. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Identical residencies in Barton le Willows with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced yearly. The lease elapsed in 2103. Taking into account 77 years left we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.