The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Bishops Lydeard may extend the lease for a further ninety years under statute. Please give careful consideration before delaying your Bishops Lydeard lease extension. Shelving that expense now simply escalates the price you will ultimately have to pay to extend the lease.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire 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. |
Using our service gives you better control over the value of your Bishops Lydeard leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the landlord of her leasehold apartment in Bishops Lydeard, Catherine commenced the lease extension process just as the lease was coming close to the critical eighty-year deadline. The legal work was concluded in November 2011. The freeholder’s fees were negotiated to less than 550 GBP.
Mr and Mrs. W Cox completed a ground floor flat in Bishops Lydeard in August 2007. The question was if we could approximate the premium would likely be for a ninety year lease extension. Comparative properties in Bishops Lydeard with 100 year plus lease were valued around £254,200. The mid-range amount of ground rent was £60 invoiced annually. The lease lapsed on 22 September 2076. Taking into account 51 years left we calculated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 plus expenses.
Last year we were contacted by Ms Ellie Lefèvre , who owned a newly refurbished apartment in Bishops Lydeard in February 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Identical homes in Bishops Lydeard with a long lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected every twelve months. The lease ended in 2087. Taking into account 62 years left we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including legals.