Hanslope residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage 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 |
Engaging our service gives you better control over the value of your Hanslope leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Kian was the the leasehold proprietor of a 2 bedroom flat in Hanslope being marketed with a lease of just over 59 years outstanding. Kian on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Kian to exercise his statutory right. Kian obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Mrs N Bernard moved into a one bedroom flat in Hanslope in July 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable premises in Hanslope with a long lease were worth £208,600. The average amount of ground rent was £60 invoiced yearly. The lease elapsed in 2083. Considering the 57 years unexpired we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including expenses.
Mr U Bonnet moved into a garden apartment in Hanslope in July 2008. The question was if we could approximate the premium could be to extend the lease by an additional years. Comparative premises in Hanslope with a long lease were worth £200,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease ran out on 18 October 2103. Having 77 years unexpired we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.