Staines residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 | 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. |
Irrespective of whether you are a tenant or a freeholder in Staines,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Staines valuers.
Two years ago Mason, started to get near to the 80-year threshold with the lease on his garden flat in Staines. Having bought his flat two decades ago, the unexpired term was of no relevance. Fortunately, he realised he would imminently be paying an inflated amount for a lease extension. Mason was able to extend his lease at the eleventh hour last June. Mason and the landlord ultimately settled on sum of £6,000 . If he failed to meet the deadline, the price would have become more costly by at least £1,000.
Mr K Torres owned a one bedroom apartment in Staines in February 1999. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparable flats in Staines with a long lease were valued about £200,800. The mid-range ground rent payable was £65 billed quarterly. The lease finished in 2085. Taking into account 60 years as a residual term we calculated the premium to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Staines property is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 82.93 years.