The only way is down when it comes to Leominster lease terms. Leominster properties that have a residual term fewer than 80 years will drop in market price at a rapid rate, and the cost to extend your lease will go up.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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; |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Leominster,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Leominster valuers.
In 2014 Toby, came seriously near to the 80-year mark with the lease on his basement apartment in Leominster. Having purchased his flat two decades ago, the unexpired term was of little bearing. Luckily, he realised he needed to take action soon on a lease extension. Toby extended the lease at the eleventh hour in August. Toby and the landlord in the end settled on a premium of £5,000 . If he not met the deadline, the amount would have become more costly by at least £850.
In 2012 we were contacted by Mr and Mrs. D Wood who, having moved into a garden flat in Leominster in February 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Leominster with an extended lease were in the region of £208,600. The mid-range amount of ground rent was £60 invoiced quarterly. The lease lapsed on 11 April 2083. Having 57 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including legals.
Last November we were approach by Ms Phoebe Green , who owned a one bedroom apartment in Leominster in February 2001. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar homes in Leominster with 100 year plus lease were worth £200,000. The average ground rent payable was £50 billed yearly. The lease finished in 2103. Having 77 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.