Sowerby Bridge leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Sowerby Bridge enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Sowerby Bridge you really ought to check if your lease has between seventy and 90 years left. There are good reasons why a Sowerby Bridge leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is effected without delay
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| 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; |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Sowerby Bridge,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sowerby Bridge valuers.
Following lengthy negotiations with the freeholder of her studio flat in Sowerby Bridge, Georgina initiated the lease extension process just as her lease was nearing the all-important 80-year mark. The transaction was concluded in October 2008. The landlord’s costs were restricted to a tad over 700 GBP.
Dr D Taylor bought a garden flat in Sowerby Bridge in October 1995. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative residencies in Sowerby Bridge with a long lease were worth £173,800. The mid-range amount of ground rent was £65 collected annually. The lease ended in 2081. Taking into account 55 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus fees.
In 2013 we were called by Mrs Ella Fournier who, having purchased a one bedroom apartment in Sowerby Bridge in April 2012. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparable residencies in Sowerby Bridge with a long lease were valued about £235,200. The average ground rent payable was £45 billed per annum. The lease lapsed on 1 July 2092. Given that there were 66 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.