The market value of Chulmleigh 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 significantly once the unexpired lease term is less than 80 years
Leasehold premises in Chulmleigh with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value 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 estate charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
Engaging our service will provide you increased control over the value of your Chulmleigh leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Harrison owned a high value flat in Chulmleigh being sold with a lease of just over fifty eight years outstanding. Harrison informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Dr W Ramírez moved into a first floor flat in Chulmleigh in June 1996. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable residencies in Chulmleigh with 100 year plus lease were in the region of £198,800. The average ground rent payable was £55 invoiced every twelve months. The lease elapsed on 2 May 2081. Taking into account 55 years as a residual term we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus costs.
Last Spring we were contacted by Dr M Leroy , who took over the lease of a garden flat in Chulmleigh in May 1999. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable flats in Chulmleigh with an extended lease were worth £300,000. The average ground rent payable was £50 collected yearly. The lease lapsed on 15 January 2101. Given that there were 75 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.