Irby leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease dips under 80 years - otherwise a higher premium will be due. Leasehold owners in Irby will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process has commenced so it’s wise to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Irby can be a difficult process. We recommend you obtain guidance from a conveyancer 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 a wealth of experience 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.
Subsequent to unsuccessful negotiations with the landlord of her one bedroom apartment in Irby, Rosie initiated the lease extension process as the eighty year threshold was swiftly nearing. The legal work was concluded in April 2009. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were called by Mr L Morris , who acquired a studio apartment in Irby in July 2004. 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. Identical residencies in Irby with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £45 billed yearly. The lease ran out in 2096. Considering the 70 years outstanding we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.
In 2013 we were contacted by Mr and Mrs. O García who, having owned a ground floor flat in Irby in November 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparative properties in Irby with an extended lease were worth £218,400. The average ground rent payable was £60 collected every twelve months. The lease termination date was on 11 July 2085. Having 59 years unexpired we approximated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of legals.