Settle residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold residencies in Settle with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with handle Settle lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
After protracted negotiations with the landlord of her studio apartment in Settle, Jade started the lease extension process just as the lease was nearing the critical eighty-year deadline. The transaction completed in July 2012. The landlord’s fees were negotiated to slightly above 650 pounds.
Ms Leah Smith completed a garden apartment in Settle in May 2003. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparative residencies in Settle with a long lease were worth £189,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease elapsed on 3 June 2078. Having 53 years as a residual term we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus professional charges.
Ms Anna Walker owned a basement flat in Settle in August 2001. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparative homes in Settle with an extended lease were worth £290,000. The mid-range ground rent payable was £45 billed yearly. The lease ended in 2098. Given that there were 73 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.