The re-sale value of a leasehold property in Saxilby depends on how many years the lease has remaining. If it is near to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded ahead of the 80 year mark. Current legislation entitles Saxilby qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason 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.
Leasehold premises in Saxilby with more than 100 years outstanding 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 home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Saxilby,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Saxilby valuers.
In 2014 Adam, started to get near to the 80-year mark with the lease on his one bedroom flat in Saxilby. In buying his flat two decades ago, the lease term was of little bearing. Fortunately, he recognised he would soon be paying an escalated premium for Extending the lease. Adam arranged for a lease extension at the eleventh hour in April. Adam and the freeholder in the end settled on sum of £6,000 . If he not met the deadline, the figure would have gone up by a minimum £850.
Mr and Mrs. K Watson bought a garden flat in Saxilby in May 2010. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparative homes in Saxilby with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed quarterly. The lease lapsed on 6 March 2105. Having 80 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.
In 2012 we were approached by Mr Y Bailey who, having purchased a garden flat in Saxilby in October 2003. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative homes in Saxilby with a long lease were valued about £200,800. The average ground rent payable was £65 collected quarterly. The lease expiry date was on 27 October 2085. Considering the 60 years unexpired we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 exclusive of legals.