Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Baschurch. Inevitably, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the property needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Baschurch have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give careful attention before delaying your Baschurch lease extension. Holding off the cost now only increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 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 |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Lease extensions in Baschurch can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor 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 procuring Baschurch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the landlord of her one bedroom apartment in Baschurch, Imogen initiated the lease extension process as the 80 year mark was quickly nearing. The legal work was finalised in July 2006. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. Y Morris owned a studio flat in Baschurch in June 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative flats in Baschurch with 100 year plus lease were in the region of £237,600. The average ground rent payable was £45 billed annually. The lease ended on 11 June 2092. Taking into account 67 years remaining we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including professional charges.
Last Spring we were phoned by Mr Ibrahim Robinson , who owned a recently refurbished apartment in Baschurch in November 2009. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Baschurch with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £55 billed per annum. The lease expiry date was on 13 February 2103. Considering the 78 years left we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.