With a domestic leasehold property in Ledbury, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Leasehold owners in Ledbury with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When the lease term has fewer than eighty years left, under the current legislation the freeholder is entitled to calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Ledbury with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Halifax | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Ledbury can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 procuring Ledbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Dexter, came critically near to the 80-year threshold with the lease on his studio apartment in Ledbury. Having bought his flat two decades ago, the lease term was of little bearing. Luckily, it dawned on him that he needed to take action soon on a lease extension. Dexter extended the lease just ahead of time last August. Dexter and the freeholder via the management company subsequently agreed on a premium of £5,000 . If he had missed the deadline, the price would have gone up by a minimum £1,050.
Ms Hannah Khan acquired a purpose-built flat in Ledbury in July 1997. The question was if we could approximate the price could be for a 90 year extension to my lease. Identical premises in Ledbury with 100 year plus lease were worth £179,200. The mid-range amount of ground rent was £55 collected every twelve months. The lease expired on 13 August 2077. Having 51 years remaining we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including legals.
In 2014 we were approached by Mr and Mrs. G Harris who, having acquired a purpose-built flat in Ledbury in February 2000. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Comparable properties in Ledbury with a long lease were valued around £285,000. The average ground rent payable was £45 invoiced yearly. The lease concluded on 18 June 2097. Considering the 71 years unexpired we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.