The value of South Petherton and Lambrook leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in South Petherton and Lambrook,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with South Petherton and Lambrook valuers.
In recent months James, came precariously close to the 80-year mark with the lease on his purpose- built apartment in South Petherton and Lambrook. In buying his home 19 years ago, the unexpired term was of minimal interest. Fortunately, he realised he would soon be paying way over the odds for a lease extension. James arranged for a lease extension just in the nick of time last January. James and the landlord who owned the flat above ultimately settled on a premium of £5,000 . If the lease had descended below 80 years, the premium would have become more costly by a minimum £875.
Last Summer we were e-mailed by Mr and Mrs. J Allen , who acquired a studio apartment in South Petherton and Lambrook in May 1998. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable flats in South Petherton and Lambrook with a long lease were valued about £275,000. The mid-range ground rent payable was £65 collected per annum. The lease finished in 2094. Considering the 68 years remaining we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.
In 2014 we were called by Mr Cameron Rodríguez who, having purchased a newly refurbished flat in South Petherton and Lambrook in July 2005. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Similar properties in South Petherton and Lambrook with 100 year plus lease were valued around £208,600. The average ground rent payable was £60 billed per annum. The lease lapsed in 2083. Having 57 years outstanding we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including legals.