The only way is down when it comes to Freshwater Bay lease terms. Freshwater Bay properties that have a lease term lower than eighty years will reduce in market price at a rapid rate, and the cost to extend your lease will increase.
Leasehold properties in Freshwater Bay with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Freshwater Bay,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Freshwater Bay valuers.
Aaron owned a studio apartment in Freshwater Bay on the market with a lease of a few days over 72 years remaining. Aaron informally approached his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aaron to exercise his statutory right. Aaron procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Last Summer we were called by Mrs B Díaz , who purchased a purpose-built flat in Freshwater Bay in March 2011. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Similar flats in Freshwater Bay with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £45 invoiced quarterly. The lease elapsed on 15 August 2099. Considering the 74 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
In 2012 we were called by Mr and Mrs. I Ricardo who, having acquired a basement apartment in Freshwater Bay in August 2010. The question was if we could approximate the price would likely be to extend the lease by ninety years. Comparative homes in Freshwater Bay with a long lease were worth £243,000. The mid-range amount of ground rent was £65 billed quarterly. The lease lapsed in 2088. Considering the 63 years remaining we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus costs.