The market value of a leasehold property in Enderby depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be finalised in advance of the 80 year mark. Current legislation enables Enderby qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Enderby with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
The conveyancers that we work with handle Enderby 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 conveyancer we work with provide it.
In the wake of eight months of unsuccessful discussions with the freeholder of her purpose-built flat in Enderby, Sarah commenced the lease extension process as the 80 year threshold was rapidly advancing. The transaction completed in September 2006. The landlord’s charges were restricted to a tad over 650 pounds.
Dr Ben Anderson acquired a ground floor apartment in Enderby in May 2009. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparative residencies in Enderby with a long lease were worth £243,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease concluded in 2089. Given that there were 63 years unexpired we estimated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 not including expenses.
Last Spring we were approach by Mr and Mrs. G Bertrand , who was assigned a lease of a studio apartment in Enderby in April 2008. The question was if we could estimate the price could be to extend the lease by a further 90 years. Similar homes in Enderby with 100 year plus lease were valued around £181,600. The mid-range ground rent payable was £55 collected every twelve months. The lease elapsed on 7 August 2078. Having 52 years remaining we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including expenses.