The re-sale value of a leasehold property in Robin Hoods Bay depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be addressed ahead of the 80 year mark. Statute entitles Robin Hoods Bay qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of ninety years. The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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; |
| Halifax | 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. |
| 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. |
Using our service gives you better control over the value of your Robin Hoods Bay leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer James, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Robin Hoods Bay. Having purchased his flat two decades ago, the unexpired term was of no significance. Fortunately, he realised he needed to take steps soon on Extending the lease. James extended the lease just under the wire in March. James and the landlord in the end settled on the final figure of £6,000 . If he not met the deadline, the price would have become more exhorbitant by at least £1,050.
Mr and Mrs. W Hernández owned a recently refurbished apartment in Robin Hoods Bay in March 1995. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Similar residencies in Robin Hoods Bay with a long lease were in the region of £295,000. The average ground rent payable was £45 billed monthly. The lease terminated in 2100. Considering the 74 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
In 2012 we were contacted by Mr and Mrs. T Thompson who, having acquired a ground floor apartment in Robin Hoods Bay in May 1996. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Robin Hoods Bay with 100 year plus lease were in the region of £243,000. The average ground rent payable was £65 collected every twelve months. The lease concluded in 2089. Given that there were 63 years remaining we calculated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus legals.