East Hunsbury 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. The majority of owners of residential leasehold property in East Hunsbury enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in East Hunsbury you would be well advised to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in East Hunsbury,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 Hunsbury valuers.
Off the back of unsuccessful discussions with the landlord of her first floor apartment in East Hunsbury, Lauren started the lease extension process as the eighty year deadline was fast coming. The legal work was finalised in January 2011. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were phoned by Mrs N Howard who, having acquired a one bedroom apartment in East Hunsbury in August 2001. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in East Hunsbury with an extended lease were in the region of £256,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease lapsed on 1 April 2077. Having 52 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 plus fees.
Ms Georgina Laurent bought a studio apartment in East Hunsbury in August 2012. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Identical premises in East Hunsbury with an extended lease were in the region of £218,000. The mid-range ground rent payable was £45 collected yearly. The lease finished on 17 July 2088. Having 63 years outstanding we calculated the premium to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of legals.