The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Easthampstead can extend the lease for an additional 90 years under statute. Do think carefully before delaying your Easthampstead lease extension. Postponing the costs today simply increases the premium you will ultimately be required to pay to extend the lease.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Easthampstead,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Easthampstead valuers.
Hunter was the the leasehold owner of a conversion apartment in Easthampstead on the market with a lease of fraction over 72 years remaining. Hunter on an informal basis approached his freeholder 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 an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Hunter to exercise his statutory right. Hunter procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Dr A Rodríguez purchased a ground floor flat in Easthampstead in April 2012. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Comparative properties in Easthampstead with an extended lease were valued around £216,000. The average amount of ground rent was £60 collected quarterly. The lease lapsed in 2082. Having 58 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of fees.
Last Christmas we were contacted by Dr I Roberts , who completed a first floor flat in Easthampstead in March 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative properties in Easthampstead with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 invoiced per annum. The lease ran out in 2102. Taking into account 78 years as a residual term we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.