Unfortunately that a East Hunsbury residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the East Hunsbury property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. The majority of flat owners in East Hunsbury will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in East Hunsbury can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in this area.
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 dealing with East Hunsbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy discussions with the freeholder of her garden apartment in East Hunsbury, Samantha initiated the lease extension process just as the lease was approaching the critical eighty-year threshold. The legal work was concluded in October 2007. The freeholder’s fees were kept to an absolute minimum.
Dr M Campbell took over the lease of a ground floor apartment in East Hunsbury in April 2009. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparable flats in East Hunsbury with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed monthly. The lease expired on 25 October 2102. Given that there were 76 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Dr Sophia Collins moved into a newly refurbished flat in East Hunsbury in October 2005. We are asked if we could approximate the price could be for a ninety year extension to my lease. Identical properties in East Hunsbury with a long lease were in the region of £176,200. The average ground rent payable was £65 collected every twelve months. The lease finished in 2082. Having 56 years unexpired we estimated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 plus legals.