The value of Barton Upon Humber leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than 80 years
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | 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 75 years plus the term of the mortgage 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Barton Upon Humber leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Harry, started to get close to the 80-year mark with the lease on his one bedroom apartment in Barton Upon Humber. Having bought his home 19 years ago, the unexpired term was of no importance. Fortunately, he realised he needed to take action soon on Extending the lease. Harry arranged for a lease extension just ahead of time last April. Harry and the landlord ultimately settled on a premium of £5,500 . If he had missed the deadline, the premium would have increased by at least £1,125.
In 2012 we were e-mailed by Dr F Johnson who, having moved into a one bedroom apartment in Barton Upon Humber in November 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Identical homes in Barton Upon Humber with an extended lease were valued about £246,800. The average ground rent payable was £60 invoiced yearly. The lease expired on 7 May 2076. Taking into account 50 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of costs.
Last year we were phoned by Mr and Mrs. E Torres , who was assigned a lease of a garden flat in Barton Upon Humber in October 2000. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar premises in Barton Upon Humber with a long lease were in the region of £208,200. The mid-range ground rent payable was £65 billed yearly. The lease lapsed on 22 August 2087. Considering the 61 years outstanding we estimated the premium to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of professional charges.