Bebington residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| 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. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Bebington can be a difficult process. We recommend you get guidance from a conveyancer and surveyor 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 procuring Bebington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
James was the the leasehold proprietor of a studio apartment in Bebington on the market with a lease of fraction over 72 years left. James informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were James to invoke his statutory right. James procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Mrs S Jones owned a one bedroom apartment in Bebington in April 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical premises in Bebington with a long lease were worth £300,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded on 5 August 2101. Considering the 75 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.
Dr S Parker acquired a recently refurbished apartment in Bebington in April 2003. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Similar premises in Bebington with 100 year plus lease were valued around £250,400. The average ground rent payable was £65 collected per annum. The lease elapsed in 2090. Given that there were 64 years outstanding we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including fees.