The market value of a leasehold property in Standish is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that all matters can be addressed in advance of the 80 year mark. Statute enables Standish qualifying lessees to obtain a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Standish,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 in-depth market knowledge and the close ties they enjoy with Standish valuers.
Half a year ago Seth, started to get close to the eighty-year mark with the lease on his two bedroom flat in Standish. Having bought his property two decades ago, the lease term was of minimal bearing. Thankfully, he recognised he would soon be paying an escalated premium for a lease extension. Seth was able to extend his lease just in the nick of time in August. Seth and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If he not met the deadline, the amount would have escalated by a minimum £975.
In 2014 we were approached by Dr P Watson who, having was assigned a lease of a studio apartment in Standish in May 1996. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparative premises in Standish with an extended lease were valued around £183,600. The mid-range amount of ground rent was £65 invoiced monthly. The lease ran out on 28 April 2083. Considering the 57 years remaining we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.
Ms Alisha Girard moved into a newly refurbished apartment in Standish in November 2010. The dilemma was if we could approximate the price would likely be to prolong the lease by 90 years. Comparable homes in Standish with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected monthly. The lease lapsed on 26 June 2094. Considering the 68 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.