Elland leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Elland enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Elland you must check if your lease has between 70 and 90 years left. There are good reasons why a Elland leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| 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; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Elland,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 Elland valuers.
In the wake of eight months of unsuccessful negotiations with the freeholder of her basement flat in Elland, Tia started the lease extension process just as the lease was approaching the critical 80-year deadline. The transaction was concluded in March 2013. The landlord’s costs were negotiated to slightly above 550 pounds.
Ms H Jackson was assigned a lease of a purpose-built apartment in Elland in May 2010. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Identical residencies in Elland with a long lease were valued around £198,800. The average ground rent payable was £55 collected yearly. The lease expired on 17 May 2081. Considering the 55 years unexpired we approximated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus professional charges.
Last Winter we were called by Dr Adam Adams , who purchased a studio flat in Elland in August 2011. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Comparable residencies in Elland with a long lease were valued around £300,000. The average amount of ground rent was £50 invoiced quarterly. The lease finished in 2101. Having 75 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.