It’s a harsh certainty that a Undy residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Undy property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be due. Most leasehold owners in Undy will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Undy with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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; |
| 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 | 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:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Undy can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer 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 dealing with Undy lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Michael, came seriously near to the 80-year mark with the lease on his one bedroom apartment in Undy. In buying his home 19 years ago, the lease term was of no significance. Thankfully, he recognised he would imminently be paying an escalated premium for a lease extension. Michael was able to extend his lease just ahead of time in June. Michael and the freeholder via the managing agents subsequently settled on the final figure of £5,500 . If the lease had gone lower than 80 years, the sum would have become more exhorbitant by a minimum £1,150.
In 2011 we were phoned by Ms H André who, having took over the lease of a one bedroom apartment in Undy in January 2012. We are asked if we could estimate the premium could be to extend the lease by 90 years. Comparable homes in Undy with an extended lease were worth £261,600. The mid-range ground rent payable was £60 billed per annum. The lease concluded on 27 April 2078. Considering the 52 years remaining we approximated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 not including expenses.
In 2010 we were e-mailed by Dr Alfie Thomas who, having took over the lease of a garden apartment in Undy in August 2007. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Comparative homes in Undy with a long lease were in the region of £218,000. The mid-range amount of ground rent was £45 billed per annum. The lease lapsed on 14 September 2089. Having 63 years outstanding we calculated the premium to the landlord to extend the lease to be within £17,100 and £19,800 plus legals.