When it comes to domestic leasehold property in Sea Mills, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Residents in Sea Mills with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. Once the lease term has fewer than eighty years left, under the current statute the landlord can calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Sea Mills,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 experience and the close ties they enjoy with Sea Mills valuers.
18 months ago Jason, started to get near to the eighty-year mark with the lease on his ground floor flat in Sea Mills. Having purchased his property 18 years ago, the length of the lease was of minimal importance. Thankfully, he recognised he would imminently be paying an inflated amount for a lease extension. Jason arranged for a lease extension at the eleventh hour last January. Jason and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If the lease had dipped to less than 80 years, the figure would have increased by at least £1,075.
In 2010 we were called by Mr and Mrs. M Clarke who, having acquired a ground floor flat in Sea Mills in August 1999. We are asked if we could estimate the price would be to prolong the lease by an additional years. Identical premises in Sea Mills with an extended lease were in the region of £189,000. The average amount of ground rent was £55 collected yearly. The lease ran out in 2078. Considering the 53 years remaining we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of legals.
Mrs Amelia Flores took over the lease of a one bedroom apartment in Sea Mills in August 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Sea Mills with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected annually. The lease finished in 2098. Taking into account 73 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.