The value of Bulwell leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is less than eighty years
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | 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. |
Irrespective of whether you are a tenant or a freeholder in Bulwell,the lease extension solicitors 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 Bulwell valuers.
After lengthy discussions with the landlord of her purpose-built flat in Bulwell, Sian started the lease extension process as the 80 year threshold was fast approaching. The transaction was finalised in June 2008. The landlord’s fees were restricted to under 500 pounds.
Last month we were approach by Dr Caleb Wright , who completed a basement apartment in Bulwell in April 1998. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Bulwell with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 collected yearly. The lease ended on 4 April 2099. Having 73 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Last year we were contacted by Ms Mia Brown , who bought a recently refurbished apartment in Bulwell in June 2010. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Comparative residencies in Bulwell with 100 year plus lease were worth £240,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease finished on 19 July 2088. Having 62 years left we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of fees.