For anyone whose New Farnley flat is held on a long lease, our message is clear – if no remedial action is taken, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 |
| Yorkshire 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. |
Lease extensions in New Farnley can be a difficult process. We recommend you procure guidance from a conveyancer 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 in-depth market knowledge dealing with 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.
Trailing lengthy negotiations with the freeholder of her studio apartment in New Farnley, Maisie initiated the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The legal work completed in April 2013. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were e-mailed by Mr Jacob Harris who, having purchased a recently refurbished apartment in New Farnley in October 2007. The question was if we could approximate the premium would be for a 90 year lease extension. Identical flats in New Farnley with a long lease were valued about £280,000. The average amount of ground rent was £55 billed every twelve months. The lease came to a finish on 15 September 2104. Given that there were 78 years left we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of expenses.
In 2009 we were contacted by Mr and Mrs. L Anderson who, having was assigned a lease of a one bedroom flat in New Farnley in August 2004. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar premises in New Farnley with a long lease were in the region of £191,000. The mid-range ground rent payable was £65 invoiced annually. The lease concluded in 2084. Taking into account 58 years unexpired we approximated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 plus expenses.