Papworth Everard leases on residential properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease drops under eighty years - otherwise a higher amount will be due. Leasehold owners in Papworth Everard will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and procedures to follow once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Papworth Everard 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.
Last October Evan, came perilously near to the 80-year threshold with the lease on his one bedroom apartment in Papworth Everard. In buying his property twenty years ago, the lease term was of minimal importance. Thankfully, he realised he would soon be paying an escalated premium for Extending the lease. Evan arranged for a lease extension just under the wire in July. Evan and the landlord eventually settled on the final figure of £5,000 . If he not met the deadline, the price would have escalated by a minimum £950.
Last year we were e-mailed by Mrs Isabella Laurent , who purchased a ground floor flat in Papworth Everard in February 2003. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical homes in Papworth Everard with a long lease were in the region of £290,000. The average amount of ground rent was £60 collected yearly. The lease lapsed in 2106. Given that there were 80 years remaining we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.
In 2010 we were approached by Mr and Mrs. P González who, having purchased a basement apartment in Papworth Everard in July 2009. The dilemma was if we could approximate the price would likely be to prolong the lease by ninety years. Identical premises in Papworth Everard with 100 year plus lease were worth £200,800. The mid-range ground rent payable was £65 billed every twelve months. The lease expiry date was on 1 July 2086. Taking into account 60 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.