The nearer a residential lease in Skellingthorpe gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner than later. Many flat owners in Skellingthorpe will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Skellingthorpe with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘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 reversionary interest unless savings on ground rent and service charges warrant it.
| 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; |
| 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. |
| 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. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Skellingthorpe leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the landlord of her one bedroom flat in Skellingthorpe, Mia initiated the lease extension process just as her lease was approaching the critical eighty-year mark. The transaction was concluded in September 2011. The freeholder’s costs were negotiated to about six hundred GBP.
Mrs J Miller completed a garden apartment in Skellingthorpe in November 2004. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar premises in Skellingthorpe with a long lease were valued around £210,000. The average ground rent payable was £50 collected yearly. The lease concluded on 14 June 2105. Taking into account 80 years left we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Mr and Mrs. T Girard bought a purpose-built flat in Skellingthorpe in March 2001. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparable properties in Skellingthorpe with a long lease were in the region of £280,000. The mid-range ground rent payable was £45 collected monthly. The lease came to a finish on 18 November 2094. Considering the 69 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.