Trentham leases on residential deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Trentham will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Trentham with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Lease extensions in Trentham can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in lease extensions.
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 dealing with Trentham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Harvey, started to get near to the 80-year threshold with the lease on his garden apartment in Trentham. In buying his flat 19 years previously, the length of the lease was of little bearing. by good luck, he noticed he needed to take steps soon on Extending the lease. Harvey was able to extend his lease at the eleventh hour in March. Harvey and the landlord who owned the flat above subsequently settled on sum of £5,000 . If the lease had slipped below 80 years, the figure would have gone up by at least £1,100.
Mr E Miller owned a purpose-built apartment in Trentham in July 1995. The question was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Trentham with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 billed yearly. The lease termination date was in 2094. Taking into account 68 years left we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.
Last month we were phoned by Mr and Mrs. I López , who was assigned a lease of a purpose-built apartment in Trentham in July 2005. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparative premises in Trentham with a long lease were in the region of £213,600. The mid-range ground rent payable was £60 collected monthly. The lease lapsed on 16 October 2083. Considering the 57 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 not including expenses.