The value of Irby 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 materialy once the unexpired lease term is less than eighty years
Leasehold premises in Irby with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 Irby can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Irby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Leo, started to get close to the eighty-year mark with the lease on his studio apartment in Irby. In buying his property two decades ago, the lease term was of no bearing. by good luck, he became aware that he needed to take steps soon on a lease extension. Leo arranged for a lease extension just in the nick of time last September. Leo and the landlord who owned the flat above subsequently agreed on sum of £5,500 . If he failed to meet the deadline, the sum would have escalated by a minimum £1,150.
In 2009 we were approached by Mr and Mrs. D Brown who, having purchased a purpose-built flat in Irby in July 2012. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparable premises in Irby with 100 year plus lease were worth £200,000. The average ground rent payable was £50 invoiced annually. The lease came to a finish on 28 November 2103. Taking into account 77 years remaining we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Last Christmas we were phoned by Dr Poppy Clarke , who bought a one bedroom apartment in Irby in February 2009. The dilemma was if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar premises in Irby with an extended lease were in the region of £260,200. The mid-range ground rent payable was £65 collected annually. The lease expiry date was on 24 June 2092. Given that there were 66 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 plus costs.