Umberleigh 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. It is the case that most Umberleigh tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Umberleigh you must see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Umberleigh flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is put in place without delay
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Umberleigh 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.
During the course of the last few months Ibrahim, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Umberleigh. Having purchased his flat 19 years ago, the length of the lease was of no concern. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Ibrahim extended the lease just under the wire in April. Ibrahim and the freeholder eventually settled on a premium of £5,000 . If he not met the deadline, the premium would have gone up by at least £950.
In 2010 we were e-mailed by Mr and Mrs. O White who, having owned a ground floor flat in Umberleigh in January 2003. The dilemma was if we could estimate the premium would be to prolong the lease by an additional years. Comparative homes in Umberleigh with a long lease were valued about £179,200. The average ground rent payable was £55 billed monthly. The lease elapsed on 16 March 2077. Considering the 51 years as a residual term we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including expenses.
In 2014 we were called by Mr Jayden Williams who, having took over the lease of a ground floor flat in Umberleigh in February 2008. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar properties in Umberleigh with an extended lease were valued around £285,000. The mid-range ground rent payable was £45 collected per annum. The lease ended in 2097. Having 71 years left we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.