Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Leyland. Inevitably, the period of lease left reduces over time. This is often ignored and only raises itself as an issue when the residence has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Leyland have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Please give careful deliberation before putting off your Leyland lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Leyland,the lease extension experts 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 Leyland valuers.
Trailing protracted negotiations with the freeholder of her one bedroom apartment in Leyland, Eleanor commenced the lease extension process as the eighty year mark was quickly coming. The lease extension was concluded in November 2008. The landlord’s fees were restricted to about 450 GBP.
Last Autumn we were called by Mrs Madeleine Peterson , who was assigned a lease of a first floor apartment in Leyland in October 2009. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Leyland with a long lease were valued about £240,600. The average ground rent payable was £60 invoiced monthly. The lease finished in 2087. Taking into account 62 years left we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of costs.
Last Christmas we were phoned by Ms Freya Ramírez , who completed a recently refurbished flat in Leyland in March 2011. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative flats in Leyland with a long lease were valued around £174,200. The mid-range ground rent payable was £55 collected every twelve months. The lease came to a finish in 2076. Considering the 51 years remaining we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including legals.