Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Repton. Inevitably, the period of lease remaining reduces over time. This is often ignored and only becomes a problem when the residence has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Repton have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. Do give due consideration before delaying your Repton lease extension. Holding off that expense now likely increases the price you will eventually have to pay for a lease extension
Leasehold premises in Repton with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 Repton can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 Repton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy negotiations with the landlord of her ground floor flat in Repton, Erin commenced the lease extension process as the 80 year mark was fast advancing. The lease extension was concluded in June 2012. The freeholder’s fees were negotiated to a tad over four hundred pounds.
In 2012 we were contacted by Mr and Mrs. U Richardson who, having bought a one bedroom flat in Repton in September 2005. The question was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Identical residencies in Repton with a long lease were worth £254,200. The average amount of ground rent was £60 invoiced every twelve months. The lease came to a finish on 22 April 2077. Having 51 years remaining we approximated the premium to the landlord to extend the lease to be within £43,700 and £50,600 plus fees.
Mrs Naomi Carter acquired a studio flat in Repton in November 2011. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable homes in Repton with a long lease were worth £210,600. The mid-range ground rent payable was £45 invoiced quarterly. The lease terminated on 21 November 2088. Given that there were 62 years as a residual term we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus professional charges.