The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Long Hanborough may extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Long Hanborough lease extension. Postponing the costs now simply escalates the price you will eventually be required to pay to extend the lease.
Leasehold residencies in Long Hanborough with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | 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. |
Using our service will provide you increased control over the value of your Long Hanborough leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Jason, started to get close to the eighty-year mark with the lease on his ground floor apartment in Long Hanborough. In buying his flat twenty years previously, the lease term was of little significance. by good luck, he realised he would imminently be paying an escalated premium for a lease extension. Jason extended the lease just under the wire in August. Jason and the freeholder in the end agreed on a premium of £6,000 . If he not met the deadline, the amount would have gone up by at least £1,075.
Mr and Mrs. O Bertrand purchased a basement apartment in Long Hanborough in February 2010. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical flats in Long Hanborough with 100 year plus lease were valued around £290,000. The average ground rent payable was £45 billed per annum. The lease lapsed in 2099. Given that there were 73 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.
In 2010 we were phoned by Mr L Parker who, having owned a basement apartment in Long Hanborough in September 2005. The question was if we could estimate the premium would be for a 90 year extension to my lease. Comparative flats in Long Hanborough with an extended lease were in the region of £235,600. The mid-range amount of ground rent was £60 billed quarterly. The lease came to a finish in 2088. Having 62 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.