The only way is down when it comes to East Coker lease terms. East Coker leaseholds that have a remaining term less than than 80 years will drop in market price even faster, and the cost to extend your lease will rise.
Leasehold premises in East Coker with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing 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; |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in East Coker,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with East Coker valuers.
Tyler was the the leasehold owner of a studio apartment in East Coker on the market with a lease of a little over 59 years remaining. Tyler informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Tyler to exercise his statutory right. Tyler procured expert advice and was able to make an informed decision and deal with the matter and sell the flat.
Last Summer we were approach by Ms F Girard , who took over the lease of a studio apartment in East Coker in February 1997. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Similar residencies in East Coker with an extended lease were valued around £181,600. The average amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2078. Given that there were 52 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus professional charges.
Dr S Sánchez took over the lease of a basement flat in East Coker in September 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Identical flats in East Coker with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 collected annually. The lease concluded in 2098. Taking into account 72 years outstanding we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.