When it comes to domestic leasehold premises in Earls Barton, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are less than eighty years remaining. Residents in Earls Barton with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has under 80 years outstanding, under the current Act the landlord is entitled to calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Earls Barton with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Earls Barton can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Earls Barton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring John, came seriously close to the 80-year mark with the lease on his two bedroom flat in Earls Barton. In buying his home 19 years previously, the lease term was of little significance. As luck would have it, he recognised he needed to take action soon on a lease extension. John arranged for a lease extension just ahead of time in August. John and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If the lease had descended lower than eighty years, the sum would have gone up by at least £925.
Last September we were e-mailed by Mrs A Gunderson , who was assigned a lease of a ground floor apartment in Earls Barton in July 1995. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Earls Barton with 100 year plus lease were valued about £227,800. The average ground rent payable was £45 invoiced every twelve months. The lease concluded in 2090. Taking into account 65 years outstanding we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.
In 2014 we were called by Mr and Mrs. G Stewart who, having took over the lease of a studio flat in Earls Barton in May 1997. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Similar homes in Earls Barton with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 billed yearly. The lease ran out on 16 November 2101. Taking into account 76 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.