The re-sale value of a leasehold property in Lyddington is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be concluded prior to the eighty year mark. Leasehold Reform legislation enables Lyddington qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
The lawyers that we work with procure Lyddington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last Summer Finn, came dangerously close to the 80-year threshold with the lease on his purpose- built flat in Lyddington. Having purchased his flat 19 years ago, the unexpired term was of no concern. Luckily, he became aware that he would imminently be paying an escalated premium for a lease extension. Finn was able to extend his lease just under the wire last January. Finn and the landlord eventually settled on sum of £6,000 . If the lease had slipped below eighty years, the price would have gone up by at least £950.
Mrs I Peterson bought a one bedroom flat in Lyddington in May 2009. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Identical residencies in Lyddington with 100 year plus lease were in the region of £183,600. The average ground rent payable was £65 collected per annum. The lease came to a finish on 27 October 2082. Having 57 years outstanding we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including costs.
Mr Andrew Wilson was assigned a lease of a first floor flat in Lyddington in April 2003. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Comparative premises in Lyddington with a long lease were in the region of £245,000. The mid-range amount of ground rent was £50 billed annually. The lease ran out on 21 June 2093. Considering the 68 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.