The only way is down when it comes to Helmsley lease terms. Helmsley properties that have a residual term fewer than 80 years will drop in value at a rapid rate, and the cost of extending your lease will increase.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Helmsley,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Helmsley valuers.
Freddie owned a high value apartment in Helmsley on the market with a lease of a little over sixty years outstanding. Freddie on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Freddie to invoke his statutory right. Freddie obtained expert legal guidance and secured an acceptable resolution without going to tribunal and sell the property.
In 2012 we were called by Mr and Mrs. M Clark who, having moved into a first floor apartment in Helmsley in October 2010. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative residencies in Helmsley with a long lease were valued around £210,000. The mid-range ground rent payable was £50 collected yearly. The lease ended in 2106. Taking into account 80 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
Mr and Mrs. M Thomas purchased a one bedroom apartment in Helmsley in November 2003. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparable premises in Helmsley with an extended lease were valued about £275,000. The mid-range ground rent payable was £45 collected quarterly. The lease expired on 21 November 2095. Given that there were 69 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.