With a residential leasehold property in Low Moor, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Leasehold owners in Low Moor with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has below eighty years left, under the current Act the landlord is entitled to calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Low Moor with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Low Moor,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Low Moor valuers.
Trailing protracted negotiations with the landlord of her one bedroom apartment in Low Moor, Mia started the lease extension process just as the lease was coming close to the critical 80-year threshold. The transaction was finalised in January 2013. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. J Walker purchased a first floor apartment in Low Moor in January 2008. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparative residencies in Low Moor with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £45 collected monthly. The lease concluded in 2096. Given that there were 70 years outstanding we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
Last Summer we were e-mailed by Dr Stephanie James , who took over the lease of a first floor flat in Low Moor in July 2010. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative homes in Low Moor with a long lease were valued about £223,400. The mid-range amount of ground rent was £60 invoiced per annum. The lease ran out on 25 January 2085. Having 59 years remaining we estimated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 not including professional charges.