With a domestic leasehold property in Purton, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are less than 80 years left. Anyone in Purton with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When the lease term has under 80 years left, under the relevant Act the landlord can calculate and demand a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Purton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Purton valuers.
Last October Teddy, started to get close to the eighty-year threshold with the lease on his garden flat in Purton. Having bought his flat two decades ago, the lease term was of no importance. As luck would have it, he noticed he would imminently be paying an inflated amount for a lease extension. Teddy extended the lease just under the wire in July. Teddy and the landlord who owned the flat above ultimately settled on a premium of £6,000 . If he failed to meet the deadline, the sum would have increased by a minimum £975.
In 2010 we were approached by Mr and Mrs. L Brooks who, having moved into a garden flat in Purton in February 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Purton with 100 year plus lease were in the region of £220,400. The mid-range amount of ground rent was £45 invoiced annually. The lease ran out on 17 October 2090. Considering the 64 years left we estimated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of professional charges.
In 2012 we were called by Mr I Cox who, having purchased a purpose-built apartment in Purton in October 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparative flats in Purton with an extended lease were worth £270,000. The mid-range ground rent payable was £55 collected yearly. The lease lapsed in 2101. Considering the 75 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.