The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Earley have the right to extend the lease for a further ninety years in accordance with statute. Please give careful consideration before delaying your Earley lease extension. Putting off the costs today simply escalates the amount you will ultimately be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancers that we work with procure Earley 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 conveyancing solicitor we work with provide it.
Ethan owned a conversion apartment in Earley being marketed with a lease of fraction over fifty eight years remaining. Ethan informally spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Ethan to invoke his statutory right. Ethan obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2009 we were called by Mr and Mrs. K Petit who, having purchased a garden flat in Earley in June 1995. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar properties in Earley with an extended lease were in the region of £250,400. The mid-range amount of ground rent was £65 collected monthly. The lease elapsed on 11 August 2090. Given that there were 64 years remaining we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of legals.
Mrs Francesca Miller bought a studio flat in Earley in August 2006. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Similar residencies in Earley with a long lease were in the region of £189,000. The average ground rent payable was £55 collected annually. The lease expiry date was on 9 November 2079. Having 53 years left we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus costs.