Ireleth and Askam leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Ireleth and Askam tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Ireleth and Askam you should see if your lease has between seventy and 90 years remaining. There are good reasons why a Ireleth and Askam leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Ireleth and Askam,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ireleth and Askam valuers.
Last October Eliot, came very close to the eighty-year threshold with the lease on his ground floor flat in Ireleth and Askam. In buying his flat twenty years previously, the lease term was of little interest. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Eliot was able to extend his lease at the eleventh hour in September. Eliot and the landlord eventually settled on an amount of £5,500 . If the lease had descended lower than eighty years, the amount would have gone up by a minimum £875.
Mr and Mrs. N López owned a recently refurbished apartment in Ireleth and Askam in March 2008. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable premises in Ireleth and Askam with 100 year plus lease were valued around £245,000. The average ground rent payable was £50 invoiced annually. The lease ran out in 2093. Having 68 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Dr Evan Murphy acquired a ground floor apartment in Ireleth and Askam in February 2008. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparative properties in Ireleth and Askam with a long lease were worth £285,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease elapsed on 14 April 2104. Having 79 years outstanding we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.