Borough Green residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 Borough Green can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 a wealth of experience dealing with Borough Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Tommy, came seriously near to the eighty-year mark with the lease on his studio flat in Borough Green. Having bought his property twenty years ago, the unexpired term was of little concern. As luck would have it, he became aware that he would soon be paying way over the odds for Extending the lease. Tommy arranged for a lease extension just ahead of time in May. Tommy and the freeholder via the management company subsequently agreed on a premium of £5,500 . If the lease had fallen below 80 years, the price would have escalated by a minimum £1,100.
Mrs W Green moved into a studio flat in Borough Green in May 2005. The question was if we could approximate the premium would be for a ninety year lease extension. Comparative properties in Borough Green with an extended lease were valued around £173,800. The average amount of ground rent was £60 billed per annum. The lease ran out in 2080. Having 55 years outstanding we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including fees.
Last month we were phoned by Dr E Bertrand , who took over the lease of a garden apartment in Borough Green in April 1997. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Comparable properties in Borough Green with 100 year plus lease were in the region of £235,200. The mid-range amount of ground rent was £45 billed quarterly. The lease lapsed in 2091. Having 66 years remaining we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.