It’s a harsh certainty that a Scunthorpe residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Scunthorpe property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be payable. Most leasehold owners in Scunthorpe will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Lease extensions in Scunthorpe can be a difficult process. We recommend you obtain guidance from a lawyer 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 in-depth market knowledge procuring Scunthorpe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Tyler, started to get near to the eighty-year threshold with the lease on his basement apartment in Scunthorpe. Having purchased his flat 18 years ago, the length of the lease was of minimal concern. Thankfully, he noticed he would imminently be paying an escalated premium for Extending the lease. Tyler extended the lease just ahead of time in September. Tyler and the freeholder via the managing agents ultimately settled on the final figure of £5,000 . If he had missed the deadline, the price would have escalated by a minimum £1,125.
Last Winter we were called by Dr N Sharif , who moved into a one bedroom apartment in Scunthorpe in November 2011. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Comparative premises in Scunthorpe with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease expired in 2100. Given that there were 74 years remaining we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.
Last Spring we were called by Dr Gabriel Roux , who purchased a first floor flat in Scunthorpe in January 2008. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Scunthorpe with a long lease were in the region of £243,000. The average amount of ground rent was £65 collected monthly. The lease ran out in 2089. Given that there were 63 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.