The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Prudhoe may extend the lease for a further ninety years in accordance with statute. Do give careful consideration before delaying your Prudhoe lease extension. Putting off that expense today simply increases the premium you will ultimately be required to pay for a lease extension.
Leasehold residencies in Prudhoe with in excess of one hundred years remaining on the lease are often regarded as a ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives you better control over the value of your Prudhoe leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Daniel, started to get near to the eighty-year threshold with the lease on his ground floor flat in Prudhoe. In buying his property 19 years previously, the unexpired term was of little bearing. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Daniel arranged for a lease extension just in the nick of time last August. Daniel and the landlord ultimately settled on an amount of £5,500 . If the lease had dipped lower than eighty years, the premium would have gone up by a minimum £850.
Last Winter we were approach by Ms Isabel Johnson , who acquired a garden apartment in Prudhoe in September 2009. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Comparable properties in Prudhoe with an extended lease were valued around £285,000. The average amount of ground rent was £55 collected every twelve months. The lease came to a finish on 17 January 2105. Considering the 79 years unexpired we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.
Last Christmas we were called by Mr and Mrs. H Sharif , who moved into a studio flat in Prudhoe in May 2012. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparative premises in Prudhoe with an extended lease were valued about £193,400. The average ground rent payable was £65 invoiced quarterly. The lease terminated on 7 September 2085. Taking into account 59 years remaining we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus costs.