The only way is down when it comes to New Farnley lease terms. New Farnley properties that have a residual term shorter than 80 years will de-escalate in market price even faster, and the cost to extend your lease will increase.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in New Farnley,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with New Farnley valuers.
Following lengthy negotiations with the landlord of her studio apartment in New Farnley, Emma started the lease extension process as the eighty year deadline was swiftly coming. The legal work was concluded in August 2015. The freeholder’s charges were negotiated to approximately 600 pounds.
In 2010 we were contacted by Mrs Courtney Roux who, having purchased a one bedroom apartment in New Farnley in October 2003. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Comparable residencies in New Farnley with an extended lease were valued around £260,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease lapsed on 12 September 2096. Considering the 71 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Last Winter we were contacted by Mr and Mrs. N Rose , who completed a newly refurbished flat in New Farnley in February 2000. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Comparable properties in New Farnley with an extended lease were in the region of £254,200. The average amount of ground rent was £60 invoiced yearly. The lease came to a finish on 11 January 2076. Taking into account 51 years outstanding we calculated the premium to the landlord for the lease extension to be between £43,700 and £50,600 plus legals.