The only way is down when it comes to Montacute lease terms. Montacute properties that have a lease term lower than 80 years will de-escalate in value even faster, and the cost to extend your lease will increase.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Montacute 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.
In the wake of 6 months of unsuccessful correspondence with the landlord of her garden apartment in Montacute, Eleanor started the lease extension process as the eighty year threshold was fast approaching. The lease extension was concluded in June 2010. The landlord’s charges were kept to an absolute minimum.
Last year we were contacted by Mr and Mrs. J Turner , who owned a one bedroom apartment in Montacute in November 2009. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparable residencies in Montacute with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 collected every twelve months. The lease finished in 2092. Given that there were 67 years remaining we approximated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of fees.
Last Christmas we were phoned by Ms Emily Simon , who acquired a garden apartment in Montacute in November 2011. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Similar flats in Montacute with a long lease were in the region of £206,200. The average ground rent payable was £55 collected every twelve months. The lease finished in 2081. Considering the 56 years as a residual term we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus costs.