The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Little Haven may extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give careful consideration before delaying your Little Haven lease extension. Putting off the costs today simply increases the price you will ultimately be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancing solicitors that we work with handle Little Haven lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In 2014 Arthur, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Little Haven. Having purchased his flat two decades ago, the unexpired term was of minimal importance. by good luck, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Arthur arranged for a lease extension just under the wire in June. Arthur and the landlord eventually settled on the final figure of £6,000 . If he not met the deadline, the amount would have escalated by a minimum £975.
Last Summer we were contacted by Ms M Murphy , who bought a basement flat in Little Haven in June 1995. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Similar properties in Little Haven with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 billed per annum. The lease ended in 2095. Having 70 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Last March we were called by Mr and Mrs. S Ricardo , who took over the lease of a one bedroom flat in Little Haven in August 1995. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical residencies in Little Haven with 100 year plus lease were worth £246,800. The average ground rent payable was £60 collected monthly. The lease end date was in 2075. Having 50 years outstanding we approximated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 plus professional charges.