The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Byfleet can extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give careful consideration before delaying your Byfleet lease extension. Putting off that expense today simply escalates the premium you will eventually have to pay for 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 any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
The conveyancing solicitors that we work with handle Byfleet 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 conveyancer we work with provide it.
Last Summer Sebastian, came precariously close to the eighty-year threshold with the lease on his garden apartment in Byfleet. Having purchased his home 18 years ago, the length of the lease was of no bearing. Thankfully, he became aware that he would soon be paying an escalated premium for a lease extension. Sebastian was able to extend his lease just under the wire in July. Sebastian and the freeholder eventually agreed on the final figure of £6,000 . If he failed to meet the deadline, the figure would have escalated by a minimum £975.
In 2010 we were contacted by Mr and Mrs. O Sánchez who, having took over the lease of a studio apartment in Byfleet in September 1998. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Byfleet with 100 year plus lease were valued about £270,000. The average ground rent payable was £55 collected yearly. The lease came to a finish in 2099. Given that there were 74 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
Last year we were approach by Dr Y Moreau , who completed a ground floor flat in Byfleet in March 1995. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparative residencies in Byfleet with an extended lease were valued about £166,400. The mid-range amount of ground rent was £60 collected every twelve months. The lease ended in 2079. Considering the 54 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of professional charges.