Partington leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the current lease dips lower than 80 years - otherwise a higher premium will be payable. Flat owners in Partington will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not be entitled. There are also strict deadlines and formalities to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
The conveyancers that we work with handle Partington 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 conveyancing solicitor we work with provide it.
In recent months Daniel, came seriously close to the eighty-year threshold with the lease on his two bedroom flat in Partington. Having bought his home two decades ago, the lease term was of minimal significance. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Daniel arranged for a lease extension at the eleventh hour in April. Daniel and the freeholder via the management company subsequently agreed on the final figure of £5,500 . If he not met the deadline, the price would have become more exhorbitant by a minimum £875.
In 2011 we were contacted by Dr Zachary Wright who, having moved into a first floor flat in Partington in March 2011. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparable homes in Partington with a long lease were valued around £261,600. The mid-range ground rent payable was £60 invoiced yearly. The lease ended in 2078. Given that there were 52 years remaining we approximated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 not including legals.
In 2011 we were called by Dr Kate Clarke who, having acquired a first floor apartment in Partington in January 2005. The question was if we could estimate the premium could be for a 90 year lease extension. Identical premises in Partington with 100 year plus lease were valued around £218,000. The mid-range ground rent payable was £45 collected monthly. The lease finished on 14 November 2089. Considering the 63 years unexpired we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 plus costs.