The re-sale value of a leasehold property in Elmswell depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is ideal to start the lease extension process when the lease still has 82 years to run so that formalities can be concluded ahead of the eighty year cut off point. Statute enables Elmswell qualifying lessees to acquire a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Elmswell with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Lease extensions in Elmswell can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge procuring Elmswell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Toby, came seriously close to the 80-year threshold with the lease on his first floor apartment in Elmswell. In buying his property two decades ago, the lease term was of minimal interest. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Toby extended the lease at the eleventh hour in August. Toby and the freeholder eventually settled on an amount of £5,500 . If the lease had slipped to less than eighty years, the sum would have escalated by at least £1,025.
Dr R Thomas owned a one bedroom apartment in Elmswell in January 2008. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Comparative residencies in Elmswell with 100 year plus lease were in the region of £208,600. The average ground rent payable was £60 billed yearly. The lease came to a finish on 11 April 2082. Having 57 years outstanding we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 not including professional charges.
Last April we were called by Dr O Clark , who bought a purpose-built flat in Elmswell in April 2004. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparable residencies in Elmswell with 100 year plus lease were valued around £200,000. The average ground rent payable was £50 collected every twelve months. The lease elapsed in 2102. Taking into account 77 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.