The only way is down when it comes to Ulverston lease terms. Ulverston leaseholds that have a residual term less than than eighty years will reduce in value at a rapid rate, and the cost of extending your lease will go up.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Ulverston 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 conveyancer we work with provide it.
Joshua was the the leasehold proprietor of a high value apartment in Ulverston on the market with a lease of just over fifty eight years left. Joshua on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Joshua to invoke his statutory right. Joshua procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mrs Daisy Peterson acquired a one bedroom flat in Ulverston in April 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Comparable homes in Ulverston with an extended lease were worth £208,200. The average ground rent payable was £65 billed every twelve months. The lease elapsed on 23 January 2087. Taking into account 61 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus fees.
Last year we were contacted by Dr O Alexander , who took over the lease of a first floor flat in Ulverston in August 2001. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative residencies in Ulverston with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 collected annually. The lease elapsed in 2098. Taking into account 72 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.