Ulceby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Ulceby enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Ulceby you must see if your lease has between 70 and 90 years left. There are good reasons why a Ulceby flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to 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; |
| Coventry Building Society | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Ulceby can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 procuring Ulceby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Charlie, started to get close to the 80-year threshold with the lease on his garden flat in Ulceby. Having purchased his home two decades ago, the length of the lease was of no interest. Fortunately, he became aware that he would imminently be paying an inflated amount for Extending the lease. Charlie was able to extend his lease just under the wire in January. Charlie and the freeholder via the management company eventually agreed on an amount of £6,000 . If he had missed the deadline, the sum would have increased by a minimum £950.
Last year we were called by Mr C Lefebvre , who moved into a basement apartment in Ulceby in June 2008. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparative premises in Ulceby with 100 year plus lease were valued around £285,000. The average amount of ground rent was £45 billed annually. The lease came to a finish in 2097. Taking into account 71 years remaining we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
Last Winter we were phoned by Mr Ryan Walker , who bought a purpose-built flat in Ulceby in February 2006. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparative premises in Ulceby with an extended lease were in the region of £233,200. The average amount of ground rent was £60 collected per annum. The lease lapsed on 3 September 2087. Taking into account 61 years remaining we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 plus expenses.