The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Iver have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. Do give careful consideration before delaying your Iver lease extension. Postponing the costs now simply increases the price you will eventually have to pay to extend the lease.
It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Iver leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Rory owned a studio flat in Iver on the market with a lease of just over 59 years remaining. Rory informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Rory to invoke his statutory right. Rory obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mrs V Watson bought a one bedroom flat in Iver in July 1997. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable properties in Iver with 100 year plus lease were valued around £265,000. The average amount of ground rent was £50 billed every twelve months. The lease lapsed in 2099. Having 74 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
An example of a Freehold Enfranchisement case for a Iver property is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case affected 2 flats. The unexpired term was 69 years.