When it comes to domestic leasehold premises in Easton, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years remaining. Leasehold owners in Easton with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. Once a lease has below eighty years outstanding, under the current legislation the freeholder is entitled to calculate and charge a larger amount, assessed on a technical computation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage 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. |
| 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. |
Engaging our service gives you increased control over the value of your Easton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kyle owned a conversion apartment in Easton on the market with a lease of fraction over 72 years unexpired. Kyle on an informal basis 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 at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kyle to invoke his statutory right. Kyle procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Last Summer we were phoned by Mr and Mrs. F Morel , who acquired a studio apartment in Easton in March 2008. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in Easton with a long lease were in the region of £168,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish on 11 February 2081. Having 55 years outstanding we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus fees.
In 2011 we were called by Mrs Bethan Michel who, having purchased a garden flat in Easton in October 2000. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Similar homes in Easton with an extended lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced per annum. The lease expired in 2092. Having 66 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.