Ulceby leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Ulceby tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Ulceby you must investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Ulceby leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold premises in Ulceby 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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 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; |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Ulceby lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of protracted correspondence with the landlord of her garden apartment in Ulceby, Katherine commenced the lease extension process as the eighty year deadline was rapidly advancing. The transaction completed in July 2013. The freeholder’s costs were restricted to less than 650 GBP.
In 2011 we were e-mailed by Mr and Mrs. N Dupont who, having moved into a garden apartment in Ulceby in March 1997. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative flats in Ulceby with an extended lease were in the region of £213,600. The mid-range ground rent payable was £60 billed annually. The lease ran out on 4 September 2082. Having 57 years outstanding we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including expenses.
In 2010 we were e-mailed by Mr and Mrs. H Ricardo who, having moved into a ground floor apartment in Ulceby in June 1995. We are asked if we could estimate the price could be for a ninety year extension to my lease. Similar properties in Ulceby with an extended lease were valued around £200,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease lapsed in 2102. Taking into account 77 years unexpired we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.