For anyone whose New Rossington property is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 Rossington can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in this area.
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 Rossington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Jude, started to get near to the eighty-year mark with the lease on his ground floor flat in New Rossington. Having bought his property two decades ago, the length of the lease was of no significance. Luckily, he recognised he needed to take action soon on Extending the lease. Jude arranged for a lease extension just under the wire in April. Jude and the freeholder in the end agreed on the final figure of £6,000 . If the lease had gone lower than 80 years, the figure would have increased by a minimum £1,100.
Mr Henry Ramírez purchased a purpose-built flat in New Rossington in January 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Identical premises in New Rossington with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £65 invoiced yearly. The lease terminated in 2094. Considering the 68 years unexpired we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.
In 2010 we were e-mailed by Dr Noah Gunderson who, having was assigned a lease of a basement flat in New Rossington in June 2002. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar residencies in New Rossington with a long lease were worth £208,600. The mid-range amount of ground rent was £60 billed quarterly. The lease terminated in 2083. Taking into account 57 years as a residual term we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of expenses.