Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Friday Hill. Clearly, the length of lease left reduces as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Friday Hill have the legal entitlement to extend the lease for an additional ninety years under statute. Please give due attention before delaying your Friday Hill lease extension. Holding off that expense now only increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Friday Hill leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Caleb, started to get close to the 80-year threshold with the lease on his ground floor apartment in Friday Hill. Having bought his flat two decades ago, the lease term was of minimal concern. Luckily, he noticed he needed to take action soon on Extending the lease. Caleb arranged for a lease extension just under the wire last July. Caleb and the landlord who owned the flat above eventually settled on an amount of £6,000 . If the lease had slipped to less than eighty years, the sum would have increased by a minimum £1,125.
In 2009 we were contacted by Mr and Mrs. J Rivera who, having took over the lease of a purpose-built apartment in Friday Hill in October 2000. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Friday Hill with a long lease were valued around £290,000. The mid-range ground rent payable was £60 billed yearly. The lease ran out in 2105. Taking into account 80 years left we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.
In 2009 we were phoned by Mr and Mrs. D Lefebvre who, having acquired a ground floor flat in Friday Hill in November 1996. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Similar homes in Friday Hill with an extended lease were valued around £200,800. The average amount of ground rent was £65 invoiced every twelve months. The lease came to a finish in 2085. Given that there were 60 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 not including legals.