Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Settle. Clearly, the term of lease left reduces over time. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Settle have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please give due attention before putting off your Settle lease extension. Holding off the cost now likely increases the price you will ultimately have to pay for a lease extension
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Settle can be a difficult process. We recommend you secure 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 dealing with Settle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted negotiations with the landlord of her garden apartment in Settle, Abigail initiated the lease extension process just as her lease was coming close to the crucial eighty-year mark. The transaction completed in August 2008. The freeholder’s charges were restricted to less than 650 GBP.
Last Winter we were approach by Dr A Taylor , who completed a newly refurbished apartment in Settle in January 2007. The question was if we could approximate the price would likely be for a ninety year lease extension. Identical residencies in Settle with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 billed every twelve months. The lease finished in 2102. Having 77 years left we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.
Mr and Mrs. J Brown acquired a basement flat in Settle in February 1997. The question was if we could approximate the price could be for a 90 year extension to my lease. Similar premises in Settle with an extended lease were in the region of £260,200. The average ground rent payable was £65 billed quarterly. The lease elapsed on 1 August 2091. Considering the 66 years left we approximated the premium to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of costs.