Chances are that where you own a flat in Nunthorpe you actually own a long leasehold interest over your property
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
The conveyancing solicitors that we work with undertake Nunthorpe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Trailing lengthy correspondence with the landlord of her studio apartment in Nunthorpe, Alisha commenced the lease extension process as the eighty year threshold was fast coming. The lease extension was concluded in February 2008. The landlord’s charges were restricted to below 550 GBP.
Last Winter we were called by Dr Lewis Bernard , who purchased a first floor flat in Nunthorpe in March 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Comparative premises in Nunthorpe with 100 year plus lease were in the region of £260,200. The average amount of ground rent was £65 collected yearly. The lease elapsed in 2091. Given that there were 66 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 plus fees.
In 2011 we were called by Dr E Bertrand who, having was assigned a lease of a ground floor apartment in Nunthorpe in September 2001. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Similar residencies in Nunthorpe with 100 year plus lease were valued around £198,800. The mid-range amount of ground rent was £55 billed quarterly. The lease finished on 14 February 2080. Given that there were 55 years left we approximated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 not including legals.