The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Filton have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Filton lease extension. Postponing that expense today simply increases the amount you will eventually have to pay for a lease extension.
Leasehold premises in Filton with more than one hundred years remaining on the lease are sometimes referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and estate charges justify 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; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Filton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Filton valuers.
Sebastian was the the leasehold proprietor of a studio apartment in Filton being sold with a lease of a few days over sixty years unexpired. Sebastian on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
In 2010 we were phoned by Ms M Morgan who, having bought a one bedroom apartment in Filton in June 2008. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Similar flats in Filton with a long lease were valued about £246,800. The average ground rent payable was £60 collected every twelve months. The lease expired on 25 October 2076. Considering the 50 years left we calculated the premium to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of fees.
In 2012 we were called by Mr A Murphy who, having acquired a purpose-built flat in Filton in February 1997. The question was if we could estimate the premium would be to extend the lease by an additional years. Similar homes in Filton with a long lease were valued around £208,200. The average amount of ground rent was £65 collected annually. The lease concluded in 2087. Considering the 61 years left we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including costs.