The value of Lower Earley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is below than eighty years
Leasehold residencies in Lower Earley with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Lower Earley can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Lower Earley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the freeholder of her first floor flat in Lower Earley, Tia commenced the lease extension process as the 80 year mark was rapidly nearing. The legal work completed in October 2012. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were phoned by Mrs Aimee Miller who, having moved into a garden flat in Lower Earley in November 2011. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Identical homes in Lower Earley with an extended lease were worth £189,000. The average ground rent payable was £55 invoiced every twelve months. The lease lapsed on 11 March 2079. Having 53 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus expenses.
In 2011 we were contacted by Ms F Dupont who, having purchased a ground floor flat in Lower Earley in March 2001. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical flats in Lower Earley with an extended lease were in the region of £290,000. The average amount of ground rent was £45 invoiced annually. The lease came to a finish in 2099. Considering the 73 years left we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.