The only way is down when it comes to Emersons Green lease terms. Emersons Green properties that have a lease term lower than 80 years will drop in market price even faster, and the cost to extend your lease will go up.
It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The lawyers that we work with undertake Emersons Green lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
After unsuccessful negotiations with the landlord of her first floor apartment in Emersons Green, Amber commenced the lease extension process as the eighty year deadline was swiftly approaching. The legal work was concluded in August 2014. The landlord’s charges were kept to an absolute minimum.
Last Spring we were contacted by Dr Amy Reed , who moved into a newly refurbished apartment in Emersons Green in January 2012. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar properties in Emersons Green with a long lease were in the region of £171,800. The mid-range ground rent payable was £55 collected yearly. The lease elapsed in 2076. Having 50 years unexpired we calculated the premium to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of fees.
Last year we were approach by Mr Reuben Clarke , who completed a one bedroom flat in Emersons Green in January 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparative residencies in Emersons Green with a long lease were valued around £280,000. The average ground rent payable was £45 invoiced yearly. The lease expired in 2096. Considering the 70 years unexpired we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.