With a residential leasehold premises in Poulton Le Fylde, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are fewer than 80 years remaining. Leasehold owners in Poulton Le Fylde with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has below eighty years outstanding, under the relevant Act the freeholder can calculate and charge a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same 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 decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Poulton Le Fylde,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Poulton Le Fylde valuers.
After lengthy discussions with the freeholder of her basement flat in Poulton Le Fylde, Alisha started the lease extension process as the 80 year threshold was swiftly coming. The legal work was finalised in June 2006. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were phoned by Mr and Mrs. D Gómez who, having took over the lease of a studio apartment in Poulton Le Fylde in July 2001. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in Poulton Le Fylde with a long lease were valued about £295,000. The average ground rent payable was £45 invoiced annually. The lease ran out in 2099. Having 74 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
Ms Amy Adams was assigned a lease of a basement flat in Poulton Le Fylde in November 1996. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical properties in Poulton Le Fylde with a long lease were in the region of £243,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease finished in 2088. Considering the 63 years unexpired we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 not including expenses.