The re-sale value of a leasehold property in Priorslee is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that all matters can be finalised ahead of the 80 year threshold. Current legislation entitles Priorslee qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Priorslee with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
The lawyers that we work with handle Priorslee 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.
Logan owned a conversion apartment in Priorslee being sold with a lease of fraction over 59 years outstanding. Logan informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Logan to invoke his statutory right. Logan procured expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
Last Summer we were called by Dr Caleb Carter , who took over the lease of a first floor apartment in Priorslee in October 2004. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical homes in Priorslee with an extended lease were valued around £189,000. The average ground rent payable was £55 billed every twelve months. The lease elapsed in 2078. Taking into account 53 years unexpired we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus expenses.
Last Autumn we were approach by Dr Aiden Bell , who purchased a first floor apartment in Priorslee in March 2010. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Similar premises in Priorslee with 100 year plus lease were valued around £290,000. The mid-range ground rent payable was £45 billed monthly. The lease lapsed in 2098. Given that there were 73 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.