Templecombe leases on domestic deteriorating in value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the current lease dips lower than 80 years - otherwise a higher premium will be due. Leasehold owners in Templecombe will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some cases you may not qualify. There are also strict deadlines and formalities to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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. |
Engaging our service will provide you enhanced control over the value of your Templecombe leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the landlord of her leasehold apartment in Templecombe, Elizabeth initiated the lease extension process just as her lease was nearing the all-important eighty-year threshold. The lease extension was finalised in February 2006. The freeholder’s costs were restricted to less than 450 GBP.
Mr and Mrs. P Morel moved into a garden apartment in Templecombe in November 1999. We are asked if we could estimate the premium could be for a 90 year lease extension. Identical properties in Templecombe with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected monthly. The lease concluded in 2105. Taking into account 79 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.
In 2012 we were contacted by Dr Robyn Bertrand who, having was assigned a lease of a garden flat in Templecombe in March 2001. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Templecombe with a long lease were worth £275,000. The mid-range amount of ground rent was £65 collected annually. The lease termination date was in 2094. Taking into account 68 years outstanding we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.