As the the remaining lease term of a Low Fell domestic lease lessens so does its value and therefore the value of your property. If the lease has, beyond 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. Most flat owners in Low Fell will meet the qualifying criteria; nevertheless a lawyer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| 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; |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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 better control over the value of your Low Fell leasehold, as your property will be more valuable and saleable in respect of lease length should you wish 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 October Alexander, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Low Fell. In buying his home 19 years ago, the length of the lease was of minimal importance. by good luck, he recognised he would soon be paying way over the odds for a lease extension. Alexander extended the lease just in the nick of time last May. Alexander and the freeholder via the management company ultimately settled on a premium of £5,000 . If he had missed the deadline, the price would have gone up by at least £975.
In 2013 we were approached by Dr Leo Parker who, having was assigned a lease of a purpose-built flat in Low Fell in February 2005. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative properties in Low Fell with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease came to a finish in 2104. Taking into account 79 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.
Mr and Mrs. U Rose bought a garden apartment in Low Fell in August 2010. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical premises in Low Fell with an extended lease were valued about £275,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease lapsed in 2093. Given that there were 68 years left we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.