For those whose Lower Earley home is held on a long lease, our message is clear – if nothing is done, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Lower Earley,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lower Earley valuers.
Nathaniel was the the leasehold proprietor of a 2 bedroom flat in Lower Earley on the market with a lease of fraction over 59 years outstanding. Nathaniel informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be payable on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
Last Autumn we were contacted by Mr U Petit , who purchased a basement flat in Lower Earley in September 2012. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparable premises in Lower Earley with a long lease were in the region of £257,800. The average ground rent payable was £65 collected annually. The lease concluded on 27 May 2091. Given that there were 65 years remaining we calculated the premium to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of professional charges.
In 2014 we were approached by Ms Elizabeth Rogers who, having owned a studio apartment in Lower Earley in October 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar premises in Lower Earley with 100 year plus lease were worth £196,400. The mid-range ground rent payable was £55 billed annually. The lease came to a finish on 5 February 2080. Taking into account 54 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £35,200 and £40,600 plus costs.