The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Elmswell may extend the lease for a further 90 years in accordance with statute. Please give careful consideration before delaying your Elmswell lease extension. Postponing that expense today simply increases the premium you will ultimately be required to pay for a lease extension.
Leasehold premises in Elmswell with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
Retaining our service gives you enhanced control over the value of your Elmswell leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the freeholder of her garden flat in Elmswell, Shannon started the lease extension process as the 80 year threshold was fast nearing. The legal work completed in September 2015. The landlord’s costs were restricted to about four hundred pounds.
In 2011 we were called by Ms Rachel Dupont who, having bought a one bedroom flat in Elmswell in August 2000. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative properties in Elmswell with 100 year plus lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ended in 2101. Taking into account 76 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
Last Spring we were phoned by Mr and Mrs. M Williams , who took over the lease of a one bedroom flat in Elmswell in October 2006. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Similar premises in Elmswell with a long lease were in the region of £257,800. The mid-range ground rent payable was £65 invoiced yearly. The lease concluded on 18 July 2090. Given that there were 65 years remaining we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus costs.