The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Empingham have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Empingham lease extension. Shelving that expense today simply increases the amount you will eventually be required to pay for a lease extension.
Leasehold properties in Empingham with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a landlord in Empingham,the lease extension experts 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 Empingham valuers.
Off the back of unsuccessful discussions with the freeholder of her studio apartment in Empingham, Ellen started the lease extension process as the eighty year threshold was swiftly advancing. The lease extension was finalised in June 2005. The landlord’s costs were restricted to under 600 pounds.
Last Spring we were called by Mr and Mrs. F King , who bought a purpose-built flat in Empingham in June 2008. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparative premises in Empingham with a long lease were valued about £205,000. The average ground rent payable was £50 collected yearly. The lease elapsed on 27 June 2103. Having 78 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.
Mr and Mrs. F Kelly moved into a one bedroom apartment in Empingham in February 1995. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative homes in Empingham with a long lease were worth £267,600. The mid-range ground rent payable was £65 collected monthly. The lease came to a finish in 2092. Taking into account 67 years as a residual term we calculated the premium to the landlord for the lease extension to be between £14,300 and £16,400 not including professional charges.