Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Skelmersdale. Clearly, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the property needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Skelmersdale have the right to extend the lease for a further ninety years in accordance with statute. You should give due deliberation before delaying your Skelmersdale lease extension. Putting off the cost now likely increases the price you will eventually incur to extend your lease
Leasehold premises in Skelmersdale with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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 are not acceptable. 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; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you increased control over the value of your Skelmersdale leasehold, as your property will be more valuable and marketable in terms of lease length should you want 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.
During the course of the last few months Jasper, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Skelmersdale. In buying his flat twenty years previously, the length of the lease was of no importance. by good luck, he noticed he would soon be paying an escalated premium for a lease extension. Jasper extended the lease just in the nick of time last June. Jasper and the freeholder via the managing agents eventually agreed on the final figure of £6,000 . If he failed to meet the deadline, the figure would have increased by a minimum £850.
Ms S Bennett owned a ground floor flat in Skelmersdale in April 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Similar flats in Skelmersdale with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected per annum. The lease expired in 2104. Taking into account 78 years remaining we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.
In 2011 we were phoned by Mr and Mrs. A Bailey who, having moved into a purpose-built apartment in Skelmersdale in August 2008. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparative flats in Skelmersdale with a long lease were in the region of £186,000. The mid-range amount of ground rent was £65 collected annually. The lease finished on 16 April 2084. Having 58 years outstanding we approximated the premium to the landlord to extend the lease to be between £24,700 and £28,600 exclusive of professional charges.