For anyone whose Sea Mills flat is held on a long lease, the message is clear – if nothing is done, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 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.
In the wake of 6 months of lengthy correspondence with the landlord of her purpose-built flat in Sea Mills, Zoe started the lease extension process just as the lease was approaching the all-important 80-year threshold. The transaction completed in January 2008. The freeholder’s charges were negotiated to a tad over six hundred GBP.
In 2014 we were approached by Mr and Mrs. V David who, having owned a one bedroom apartment in Sea Mills in May 2001. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar flats in Sea Mills with 100 year plus lease were worth £225,800. The mid-range amount of ground rent was £60 invoiced quarterly. The lease end date was in 2085. Considering the 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 not including costs.
Last Winter we were approach by Mrs L Cox , who purchased a first floor flat in Sea Mills in July 2007. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical premises in Sea Mills with 100 year plus lease were worth £210,000. The mid-range ground rent payable was £50 billed annually. The lease came to a finish on 24 January 2105. Taking into account 80 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.