Scunthorpe leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Scunthorpe tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Scunthorpe you must check if your lease has between 70 and ninety years left. There are compelling reasons why a Scunthorpe flat owner with a lease having around eighty years left should take action to make sure that a lease extension is effected without delay
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Lloyds TSB Scotland | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Scunthorpe,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Scunthorpe valuers.
Half a year ago Oliver, came very close to the 80-year mark with the lease on his leasehold flat in Scunthorpe. In buying his flat two decades ago, the length of the lease was of minimal importance. Thankfully, he realised he needed to take steps soon on Extending the lease. Oliver extended the lease at the eleventh hour last August. Oliver and the landlord ultimately agreed on sum of £5,500 . If the lease had slid to less than eighty years, the sum would have escalated by at least £975.
Mr and Mrs. I Scott took over the lease of a garden apartment in Scunthorpe in October 1998. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Similar flats in Scunthorpe with a long lease were in the region of £184,000. The average ground rent payable was £55 collected per annum. The lease terminated in 2079. Having 53 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of fees.
Dr Y Roberts completed a ground floor apartment in Scunthorpe in April 2010. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative premises in Scunthorpe with an extended lease were in the region of £290,000. The average amount of ground rent was £45 billed annually. The lease came to a finish on 21 August 2099. Considering the 73 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.