The market value of Hanslope leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is below than eighty years
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Hanslope,the lease extension solicitors 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 Hanslope valuers.
After lengthy correspondence with the landlord of her purpose-built flat in Hanslope, Kelsey started the lease extension process just as her lease was nearing the all-important 80-year threshold. The legal work completed in August 2006. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were called by Mr and Mrs. B Roux , who bought a one bedroom flat in Hanslope in September 1997. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar residencies in Hanslope with an extended lease were valued about £225,800. The average amount of ground rent was £60 invoiced per annum. The lease expired on 24 April 2085. Having 60 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of fees.
Last June we were phoned by Mrs N Thompson , who was assigned a lease of a studio apartment in Hanslope in October 2007. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Hanslope with 100 year plus lease were in the region of £210,000. The mid-range ground rent payable was £50 billed annually. The lease ran out in 2105. Considering the 80 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.