When it comes to domestic leasehold premises in Ulceby, you are actually buying a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Residents in Ulceby with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has less than eighty years remaining, under the relevant statute the landlord can calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Ulceby with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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; |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure 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.
Following lengthy discussions with the freeholder of her leasehold flat in Ulceby, Abigail started the lease extension process just as her lease was approaching the critical eighty-year mark. The lease extension was finalised in June 2015. The landlord’s charges were kept to an absolute minimum.
Mr L Richardson took over the lease of a first floor flat in Ulceby in February 1999. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparative flats in Ulceby with an extended lease were worth £196,400. The average amount of ground rent was £55 collected quarterly. The lease concluded in 2080. Taking into account 54 years left we approximated the premium to the landlord for the lease extension to be between £35,200 and £40,600 not including legals.
In 2013 we were e-mailed by Mr Ibrahim Patel who, having completed a first floor apartment in Ulceby in November 1996. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparative residencies in Ulceby with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease ran out on 23 April 2100. Considering the 74 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.