The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Undy may extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your Undy lease extension. Putting off the costs today simply increases the amount you will ultimately have to pay to extend the lease.
Leasehold residencies in Undy with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Undy,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Undy valuers.
Arthur was the the leasehold proprietor of a 2 bedroom flat in Undy on the market with a lease of fraction over 61 years unexpired. Arthur informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Arthur to exercise his statutory right. Arthur procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2012 we were contacted by Mrs Charlotte Green who, having completed a ground floor apartment in Undy in September 2008. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparable properties in Undy with a long lease were worth £250,000. The mid-range ground rent payable was £50 billed quarterly. The lease concluded on 20 February 2095. Considering the 69 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Mr and Mrs. R Lambert completed a one bedroom apartment in Undy in April 1999. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical properties in Undy with an extended lease were valued around £285,000. The average amount of ground rent was £55 billed annually. The lease came to a finish in 2106. Having 80 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.