Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in New Farnley. Clearly, the term of lease left shortens as time goes by. This may pass by relatively unnoticed when the property needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying leaseholders in New Farnley have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. You should give due deliberation before putting off your New Farnley lease extension. Putting off the cost now likely increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as 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; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in New Farnley can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 procuring New Farnley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Zachary, came dangerously near to the eighty-year mark with the lease on his garden flat in New Farnley. Having purchased his home two decades ago, the unexpired term was of little importance. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Zachary arranged for a lease extension at the eleventh hour in August. Zachary and the landlord in the end agreed on an amount of £5,500 . If the lease had dipped lower than eighty years, the sum would have become more exhorbitant by a minimum £900.
In 2013 we were e-mailed by Mr and Mrs. C Jackson who, having purchased a first floor flat in New Farnley in August 1995. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparable premises in New Farnley with a long lease were in the region of £225,400. The mid-range amount of ground rent was £45 collected annually. The lease concluded in 2089. Considering the 64 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 plus legals.
Mr P Ramírez took over the lease of a first floor flat in New Farnley in April 1996. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Identical flats in New Farnley with a long lease were valued about £270,000. The mid-range amount of ground rent was £55 billed yearly. The lease ended in 2100. Given that there were 75 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.