The nearer a residential lease in Benson nears to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 100 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Many flat owners in Benson will meet the qualifying criteria; that being said a lawyer will be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to 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; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Benson leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Archie, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Benson. Having bought his home two decades ago, the lease term was of no importance. Fortunately, he recognised he needed to take action soon on a lease extension. Archie was able to extend his lease at the eleventh hour last August. Archie and the freeholder eventually settled on sum of £6,000 . If he failed to meet the deadline, the price would have increased by at least £850.
In 2012 we were e-mailed by Mr and Mrs. C Dupont who, having acquired a one bedroom flat in Benson in April 2006. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Similar residencies in Benson with 100 year plus lease were worth £176,200. The mid-range ground rent payable was £65 billed annually. The lease expired on 27 September 2081. Considering the 56 years remaining we approximated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 not including legals.
In 2010 we were called by Mr M Allen who, having completed a one bedroom apartment in Benson in February 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable premises in Benson with a long lease were in the region of £237,600. The mid-range ground rent payable was £45 billed every twelve months. The lease expiry date was in 2092. Having 67 years outstanding we estimated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of legals.