For those whose Breaston home is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Breaston,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Breaston valuers.
Last year Finley, came very close to the eighty-year threshold with the lease on his ground floor apartment in Breaston. Having bought his flat two decades ago, the lease term was of no interest. Luckily, he realised he needed to take action soon on Extending the lease. Finley arranged for a lease extension at the eleventh hour in March. Finley and the freeholder in the end agreed on the final figure of £6,000 . If he failed to meet the deadline, the figure would have increased by a minimum £1,075.
Dr Ryan Martínez was assigned a lease of a basement apartment in Breaston in November 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparable homes in Breaston with 100 year plus lease were valued about £270,000. The average ground rent payable was £55 collected per annum. The lease termination date was on 19 May 2100. Considering the 74 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
Mr and Mrs. U David purchased a ground floor flat in Breaston in November 1995. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparable homes in Breaston with an extended lease were valued about £166,400. The average ground rent payable was £60 billed monthly. The lease finished on 16 May 2080. Considering the 54 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of professional charges.