The market value of Liss leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the remaining term is less than eighty years
Leasehold residencies in Liss with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Lloyds TSB 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Liss,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Liss valuers.
Off the back of protracted discussions with the landlord of her basement flat in Liss, Amy initiated the lease extension process just as the lease was approaching the all-important eighty-year mark. The legal work was finalised in February 2012. The freeholder’s charges were restricted to below 650 pounds.
Mr and Mrs. I Martinez moved into a ground floor apartment in Liss in July 2008. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Similar premises in Liss with an extended lease were in the region of £223,400. The average amount of ground rent was £60 billed every twelve months. The lease lapsed in 2084. Considering the 59 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 plus legals.
Last Summer we were called by Mr and Mrs. E Lambert , who moved into a purpose-built flat in Liss in March 2011. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable properties in Liss with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 billed yearly. The lease came to a finish in 2104. Having 79 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.