Ulverston leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Ulverston residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Ulverston you should investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Ulverston leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is effected without delay
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you better control over the value of your Ulverston leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Caleb, came seriously close to the 80-year threshold with the lease on his ground floor apartment in Ulverston. In buying his home 19 years ago, the unexpired term was of little concern. Thankfully, he became aware that he needed to take action soon on Extending the lease. Caleb arranged for a lease extension just under the wire last August. Caleb and the landlord subsequently agreed on an amount of £5,000 . If he failed to meet the deadline, the figure would have increased by at least £1,000.
In 2014 we were contacted by Mr and Mrs. E Laurent who, having completed a garden apartment in Ulverston in April 2003. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparable properties in Ulverston with a long lease were in the region of £235,200. The average amount of ground rent was £45 billed per annum. The lease expired on 21 March 2091. Taking into account 66 years remaining we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.
In 2014 we were approached by Mr and Mrs. D Phillips who, having was assigned a lease of a one bedroom flat in Ulverston in August 1995. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Comparable premises in Ulverston with a long lease were valued about £280,000. The average amount of ground rent was £55 collected monthly. The lease concluded in 2102. Given that there were 77 years remaining we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.