The only way is down when it comes to Haydon Bridge lease terms. Haydon Bridge leaseholds that have a residual term lower than 80 years will de-escalate in market price at a rapid rate, and the cost of extending your lease will increase.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 will provide you enhanced control over the value of your Haydon Bridge leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jayden owned a high value apartment in Haydon Bridge being sold with a lease of just over sixty years outstanding. Jayden on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jayden to invoke his statutory right. Jayden procured expert legal guidance and secured satisfactory resolution informally and sell the property.
Last month we were e-mailed by Mr Seth Davis , who bought a purpose-built apartment in Haydon Bridge in September 2000. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparative flats in Haydon Bridge with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 billed per annum. The lease came to a finish in 2092. Taking into account 66 years outstanding we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.
In 2011 we were approached by Mr and Mrs. P Alexander who, having purchased a ground floor flat in Haydon Bridge in March 2002. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical properties in Haydon Bridge with an extended lease were valued about £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease concluded in 2103. Having 77 years remaining we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus legals.