The value of Raynes Park leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the unexpired lease term is less than eighty years
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Raynes Park can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Raynes Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago William, came perilously near to the eighty-year threshold with the lease on his two bedroom flat in Raynes Park. In buying his home two decades ago, the unexpired term was of little significance. Thankfully, he became aware that he would soon be paying an escalated premium for a lease extension. William was able to extend his lease just in the nick of time last May. William and the landlord ultimately agreed on the final figure of £5,500 . If he failed to meet the deadline, the amount would have become more exhorbitant by at least £975.
Last Christmas we were called by Mrs V Watson , who bought a one bedroom flat in Raynes Park in August 2005. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparable premises in Raynes Park with 100 year plus lease were valued about £191,400. The mid-range ground rent payable was £55 billed every twelve months. The lease terminated on 3 June 2080. Considering the 54 years left we calculated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 plus expenses.
An example of a Lease Extension decision for a Raynes Park property is 33 The Maisonettes Alberta Avenue in June 2014. the Tribunal decided that the premium payable for the grant of a new lease be the sum of £20,680 (Twenty Thousand six hundred and eighty pounds). This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 60.43 years.