The only way is down when it comes to Ulceby lease terms. Ulceby flats that have a residual term fewer than 80 years will reduce in market price at a rapid rate, and the cost of extending your lease will go up.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Lloyds TSB Scotland | 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 |
The lawyers that we work with handle 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 lawyer we work with provide it.
In 2014 James, came critically near to the 80-year mark with the lease on his leasehold flat in Ulceby. In buying his flat 19 years ago, the unexpired term was of little bearing. by good luck, it dawned on him that he would soon be paying an inflated amount for a lease extension. James arranged for a lease extension just ahead of time last June. James and the freeholder ultimately settled on the final figure of £5,500 . If he not met the deadline, the premium would have gone up by at least £850.
In 2010 we were called by Dr L Clarke who, having owned a ground floor apartment in Ulceby in November 2009. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparative properties in Ulceby with an extended lease were worth £300,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended in 2101. Given that there were 76 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Dr Kirsty Ward acquired a garden apartment in Ulceby in September 1997. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Similar flats in Ulceby with 100 year plus lease were valued around £257,800. The mid-range ground rent payable was £65 collected annually. The lease ended in 2090. Considering the 65 years as a residual term we approximated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including costs.