Penn and Ettingshall leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the current lease drops lower than eighty years - otherwise a higher premium will be due. Leasehold owners in Penn and Ettingshall will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some circumstances you may not qualify. There are also strict timetables and procedures to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| 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 conveyancers that we work with procure Penn and Ettingshall 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.
Off the back of protracted discussions with the freeholder of her one bedroom apartment in Penn and Ettingshall, Alisha started the lease extension process just as the lease was coming close to the all-important eighty-year mark. The lease extension was finalised in September 2011. The landlord’s costs were kept to an absolute minimum.
Last year we were approach by Dr O Rodríguez , who purchased a one bedroom apartment in Penn and Ettingshall in September 1995. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical properties in Penn and Ettingshall with 100 year plus lease were valued about £168,800. The average ground rent payable was £60 billed annually. The lease lapsed in 2081. Taking into account 55 years remaining we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus professional charges.
In 2009 we were called by Dr Gemma Michel who, having purchased a one bedroom flat in Penn and Ettingshall in September 2012. The question was if we could approximate the price could be to extend the lease by ninety years. Similar flats in Penn and Ettingshall with a long lease were worth £235,200. The mid-range ground rent payable was £45 collected per annum. The lease expired on 1 February 2092. Taking into account 66 years remaining we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.