Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Shirenewton. Inevitably, the length of lease left reduces over time. This is often overlooked and only raises itself as an issue when the residence needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Shirenewton have the right to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. You should give due consideration before putting off your Shirenewton lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
Retaining our service will provide you increased control over the value of your Shirenewton leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Gabriel, came critically close to the eighty-year mark with the lease on his ground floor flat in Shirenewton. In buying his home 19 years previously, the length of the lease was of little significance. As luck would have it, he realised he needed to take steps soon on a lease extension. Gabriel arranged for a lease extension just under the wire last June. Gabriel and the freeholder via the management company eventually agreed on the final figure of £5,000 . If he had missed the deadline, the premium would have become more exhorbitant by a minimum £1,075.
In 2011 we were phoned by Mrs Gemma Harris who, having was assigned a lease of a purpose-built flat in Shirenewton in September 2012. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparative flats in Shirenewton with an extended lease were valued around £184,000. The average ground rent payable was £55 invoiced per annum. The lease lapsed on 11 April 2078. Taking into account 53 years outstanding we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus legals.
Last Summer we were approach by Dr S Allen , who owned a studio flat in Shirenewton in January 1997. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparative premises in Shirenewton with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease finished on 17 August 2098. Taking into account 73 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.