Chances are that where you own a flat in Scunthorpe you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Scunthorpe leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Stanley owned a high value apartment in Scunthorpe being sold with a lease of just over 59 years outstanding. Stanley on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Stanley to invoke his statutory right. Stanley obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Last Summer we were e-mailed by Mr and Mrs. Y Gunderson , who was assigned a lease of a garden apartment in Scunthorpe in January 2000. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative flats in Scunthorpe with a long lease were in the region of £252,800. The average ground rent payable was £65 invoiced every twelve months. The lease elapsed on 5 June 2091. Having 65 years as a residual term we estimated the premium to the landlord for the lease extension to be between £17,100 and £19,800 plus expenses.
In 2010 we were approached by Ms N Ali who, having purchased a garden apartment in Scunthorpe in February 2008. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Similar flats in Scunthorpe with an extended lease were worth £191,400. The average ground rent payable was £55 invoiced per annum. The lease terminated in 2080. Taking into account 54 years unexpired we estimated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of legals.