For those whose Barton Upon Humber flat is held on a long lease, the message is clear – if you ignore the situation, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension.
Leasehold premises in Barton Upon Humber with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Barton Upon Humber,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barton Upon Humber valuers.
After lengthy discussions with the freeholder of her first floor flat in Barton Upon Humber, Imogen initiated the lease extension process as the eighty year deadline was quickly nearing. The lease extension completed in July 2005. The landlord’s costs were restricted to a tad over 650 GBP.
Last Winter we were e-mailed by Dr Jessica Ali , who was assigned a lease of a basement flat in Barton Upon Humber in July 2008. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Comparable residencies in Barton Upon Humber with a long lease were worth £183,600. The average amount of ground rent was £65 billed quarterly. The lease ran out on 15 June 2083. Given that there were 57 years left we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including fees.
Dr N Hall was assigned a lease of a studio apartment in Barton Upon Humber in July 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Identical premises in Barton Upon Humber with 100 year plus lease were worth £245,000. The average ground rent payable was £50 invoiced annually. The lease terminated in 2094. Having 68 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.