Low Fell leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Low Fell residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Low Fell you would be well advised to check if your lease has between 70 and 90 years left. There are good reasons why a Low Fell flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is effected without delay
Leasehold premises in Low Fell with in excess of 100 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Using our service will provide you better control over the value of your Low Fell leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Jasper, came seriously close to the eighty-year threshold with the lease on his garden apartment in Low Fell. Having purchased his home twenty years previously, the lease term was of no importance. by good luck, he realised he needed to take action soon on Extending the lease. Jasper was able to extend his lease at the eleventh hour in July. Jasper and the freeholder subsequently settled on the final figure of £6,000 . If the lease had dipped below eighty years, the amount would have gone up by at least £1,000.
Mr and Mrs. K Gómez was assigned a lease of a ground floor flat in Low Fell in October 2008. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparable homes in Low Fell with a long lease were worth £250,400. The mid-range ground rent payable was £65 billed annually. The lease came to a finish in 2090. Considering the 64 years left we approximated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of legals.
In 2009 we were phoned by Mr and Mrs. I Richardson who, having acquired a first floor apartment in Low Fell in February 2010. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Comparable properties in Low Fell with a long lease were valued about £184,000. The mid-range ground rent payable was £55 billed every twelve months. The lease terminated in 2079. Given that there were 53 years remaining we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus expenses.