Studley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Studley residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Studley you should see if your lease has between 70 and 90 years left. There are good reasons why a Studley flat owner with a lease having around eighty years remaining should take steps to make sure that a lease extension is actioned without delay
Leasehold premises in Studley with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Lease extensions in Studley can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Studley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago William, started to get near to the 80-year mark with the lease on his leasehold flat in Studley. Having bought his property two decades ago, the length of the lease was of little significance. Fortunately, he became aware that he needed to take steps soon on a lease extension. William extended the lease just under the wire in March. William and the freeholder via the management company in the end agreed on an amount of £6,000 . If the lease had dipped below 80 years, the sum would have become more costly by at least £975.
Last Christmas we were phoned by Mr and Mrs. P Johnson , who acquired a garden apartment in Studley in January 2010. The question was if we could estimate the premium would be to prolong the lease by ninety years. Identical flats in Studley with an extended lease were worth £174,200. The mid-range amount of ground rent was £55 billed yearly. The lease came to a finish in 2076. Taking into account 51 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including expenses.
Mr and Mrs. L Taylor completed a one bedroom flat in Studley in August 2012. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Similar residencies in Studley with an extended lease were valued around £285,000. The mid-range ground rent payable was £45 billed yearly. The lease ended on 11 March 2096. Taking into account 71 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.