Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Long Stratton. Clearly, the period of lease left shortens as time goes by. This may slip by relatively unnoticed when the property has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying long lease owners in Long Stratton have the legal entitlement to extend the lease for an additional ninety years under legislation. Please give due consideration before delaying your Long Stratton lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Long Stratton leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of unsuccessful correspondence with the landlord of her basement flat in Long Stratton, Georgia initiated the lease extension process just as her lease was nearing the crucial eighty-year threshold. The lease extension completed in September 2006. The freeholder’s fees were negotiated to below 550 pounds.
Mr and Mrs. U Laurent acquired a recently refurbished flat in Long Stratton in March 2008. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar homes in Long Stratton with a long lease were valued around £300,000. The average ground rent payable was £50 billed yearly. The lease ended on 21 June 2101. Given that there were 76 years outstanding we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.
Last Winter we were called by Mr and Mrs. C White , who was assigned a lease of a ground floor apartment in Long Stratton in June 1999. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparable flats in Long Stratton with an extended lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected yearly. The lease end date was on 8 May 2090. Considering the 65 years remaining we approximated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including expenses.