The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Lincoln may extend the lease for a further ninety years under legislation. Do give careful consideration before delaying your Lincoln lease extension. Putting off the costs now simply escalates the price you will eventually have to pay to extend the lease.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Irrespective of whether you are a tenant or a freeholder in Lincoln,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lincoln valuers.
18 months ago Gabriel, started to get near to the 80-year mark with the lease on his purpose- built apartment in Lincoln. In buying his property two decades ago, the lease term was of minimal concern. by good luck, he became aware that he needed to take action soon on a lease extension. Gabriel was able to extend his lease just ahead of time last April. Gabriel and the freeholder ultimately agreed on a premium of £6,000 . If he not met the deadline, the price would have increased by a minimum £1,025.
In 2011 we were approached by Dr Aiden Murphy who, having owned a purpose-built flat in Lincoln in January 2004. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative properties in Lincoln with 100 year plus lease were valued about £300,000. The mid-range ground rent payable was £50 invoiced per annum. The lease concluded on 3 July 2102. Taking into account 76 years left we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.
Mrs Ella Campbell completed a first floor apartment in Lincoln in April 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative flats in Lincoln with a long lease were in the region of £257,800. The average ground rent payable was £65 collected every twelve months. The lease concluded on 15 June 2091. Having 65 years outstanding we estimated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus fees.