Mexborough and Swinton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Mexborough and Swinton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Mexborough and Swinton you should see if your lease has between seventy and 90 years left. There are good reasons why a Mexborough and Swinton flat owner with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| 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 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; |
| 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. |
| 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. |
The conveyancing solicitors that we work with handle Mexborough and Swinton 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 lawyer we work with provide it.
In the wake of 6 months of unsuccessful negotiations with the landlord of her ground floor apartment in Mexborough and Swinton, Freya initiated the lease extension process as the eighty year deadline was swiftly advancing. The legal work completed in August 2010. The freeholder’s fees were kept to an absolute minimum.
Last March we were phoned by Dr E Díaz , who moved into a one bedroom flat in Mexborough and Swinton in April 2001. We are asked if we could estimate the price would be for a 90 year lease extension. Identical flats in Mexborough and Swinton with a long lease were valued about £198,800. The average amount of ground rent was £55 collected yearly. The lease concluded on 15 May 2080. Having 55 years unexpired we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 plus costs.
Ms T André owned a ground floor flat in Mexborough and Swinton in November 1999. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar premises in Mexborough and Swinton with an extended lease were in the region of £295,000. The average ground rent payable was £50 collected yearly. The lease ended on 19 April 2100. Given that there were 75 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.