The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Mosborough can extend the lease for an additional 90 years under statute. Do think carefully before delaying your Mosborough lease extension. Putting off the costs today simply increases the amount you will ultimately have to pay for a lease extension.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Mosborough can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.
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 a wealth of experience dealing with Mosborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Sam, started to get close to the eighty-year threshold with the lease on his two bedroom apartment in Mosborough. In buying his property 18 years ago, the unexpired term was of no concern. Fortunately, he noticed he would soon be paying an inflated amount for Extending the lease. Sam arranged for a lease extension just in the nick of time last July. Sam and the landlord in the end agreed on a premium of £5,000 . If he not met the deadline, the sum would have increased by at least £1,150.
In 2013 we were e-mailed by Dr B Reed who, having moved into a one bedroom flat in Mosborough in February 2005. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Mosborough with 100 year plus lease were worth £254,200. The mid-range amount of ground rent was £60 billed monthly. The lease came to a finish on 15 July 2077. Taking into account 51 years left we calculated the premium to the landlord for the lease extension to be between £43,700 and £50,600 plus expenses.
In 2012 we were contacted by Mr N White who, having took over the lease of a recently refurbished flat in Mosborough in April 2011. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Mosborough with a long lease were worth £215,600. The average ground rent payable was £45 billed monthly. The lease elapsed on 17 November 2088. Considering the 62 years left we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus costs.