The only way is down when it comes to Box lease terms. Box leaseholds that have a lease term less than than 80 years will reduce in market price at a rapid rate, and the cost of extending your lease will rise.
Leasehold residencies in Box with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Box lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last October Jonathan, started to get near to the eighty-year mark with the lease on his garden apartment in Box. Having purchased his flat two decades ago, the length of the lease was of no interest. Thankfully, he realised he needed to take action soon on Extending the lease. Jonathan extended the lease just in the nick of time in April. Jonathan and the freeholder via the managing agents in the end settled on a premium of £5,000 . If he not met the deadline, the premium would have escalated by a minimum £950.
Last Autumn we were e-mailed by Ms I Harris , who completed a first floor flat in Box in July 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Box with an extended lease were worth £275,000. The mid-range ground rent payable was £55 collected monthly. The lease came to a finish in 2102. Considering the 77 years left we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.
In 2014 we were contacted by Dr T Díaz who, having bought a ground floor apartment in Box in February 2004. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Comparable flats in Box with a long lease were in the region of £183,600. The average ground rent payable was £65 billed yearly. The lease ran out in 2082. Given that there were 57 years left we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.