Conisbrough leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Conisbrough residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Conisbrough you should see if your lease has between 70 and 90 years left. There are good reasons why a Conisbrough flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Using our service gives you better control over the value of your Conisbrough leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Hugo owned a high value apartment in Conisbrough being marketed with a lease of a little over fifty eight years left. Hugo informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be due on a lease extension were Hugo to exercise his statutory right. Hugo obtained expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last November we were called by Mr and Mrs. O Lewis , who owned a studio flat in Conisbrough in August 2004. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable properties in Conisbrough with 100 year plus lease were worth £285,000. The average ground rent payable was £55 invoiced monthly. The lease terminated in 2104. Having 79 years left we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.
Dr U Evans bought a ground floor flat in Conisbrough in October 2010. The question was if we could approximate the premium would be for a 90 year extension to my lease. Comparative properties in Conisbrough with a long lease were worth £193,400. The average ground rent payable was £65 invoiced quarterly. The lease lapsed in 2084. Considering the 59 years outstanding we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus expenses.