When it comes to long leasehold property in Peasedown St John, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Residents in Peasedown St John with a lease drawing near to 81 years remaining should seriously think of extending it sooner as opposed to later. When the lease term has below eighty years outstanding, under the current statute the freeholder is entitled to calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to 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; |
| 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. |
| 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. |
| 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 |
Using our service will provide you enhanced control over the value of your Peasedown St John leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful discussions with the landlord of her basement apartment in Peasedown St John, Daisy commenced the lease extension process just as her lease was coming close to the critical 80-year mark. The legal work was concluded in July 2011. The freeholder’s fees were restricted to approximately 500 GBP.
Last Autumn we were approach by Dr G Bonnet , who moved into a one bedroom flat in Peasedown St John in October 2006. The dilemma was if we could approximate the price could be to extend the lease by 90 years. Comparative residencies in Peasedown St John with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease expired on 15 September 2105. Having 79 years as a residual term we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.
Dr Isobel Sharif bought a studio flat in Peasedown St John in October 2005. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Comparable properties in Peasedown St John with a long lease were in the region of £193,400. The average amount of ground rent was £65 collected per annum. The lease expired on 28 September 2085. Given that there were 59 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of expenses.