The value of Copmanthorpe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is less than 80 years
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Copmanthorpe 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.
Two years ago Evan, came perilously near to the eighty-year threshold with the lease on his one bedroom flat in Copmanthorpe. In buying his property two decades ago, the lease term was of minimal interest. by good luck, he recognised he would soon be paying an inflated amount for Extending the lease. Evan extended the lease at the eleventh hour last May. Evan and the freeholder subsequently settled on sum of £5,500 . If the lease had slipped to less than eighty years, the sum would have gone up by a minimum £925.
Mrs Poppy Martin completed a basement flat in Copmanthorpe in March 2006. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative residencies in Copmanthorpe with a long lease were in the region of £245,000. The average amount of ground rent was £45 billed yearly. The lease lapsed in 2093. Having 68 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
In 2011 we were phoned by Dr Muhammad Martínez who, having completed a newly refurbished flat in Copmanthorpe in August 2003. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Identical homes in Copmanthorpe with a long lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease concluded in 2104. Given that there were 79 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.