The value of Hatch and Old Basing leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is less than eighty years
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Yorkshire 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. |
Lease extensions in Hatch and Old Basing can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Hatch and Old Basing lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the landlord of her basement apartment in Hatch and Old Basing, Ellie started the lease extension process just as the lease was nearing the critical eighty-year deadline. The transaction was concluded in February 2007. The freeholder’s charges were negotiated to approximately 450 pounds.
Mrs Y Lee took over the lease of a first floor apartment in Hatch and Old Basing in June 1996. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative residencies in Hatch and Old Basing with a long lease were worth £208,200. The mid-range ground rent payable was £65 invoiced per annum. The lease lapsed on 27 April 2086. Given that there were 61 years unexpired we estimated the premium to the landlord for the lease extension to be within £19,000 and £22,000 not including expenses.
In 2010 we were contacted by Mrs Victoria Harris who, having completed a garden flat in Hatch and Old Basing in November 2001. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical homes in Hatch and Old Basing with a long lease were worth £260,000. The average ground rent payable was £50 invoiced yearly. The lease came to a finish in 2097. Given that there were 72 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.