The market value of a leasehold property in Undy is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be addressed ahead of the eighty year threshold. Current legislation enables Undy qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Undy with more than 100 years left 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Undy can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
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.
After unsuccessful correspondence with the landlord of her first floor flat in Undy, Rebecca started the lease extension process as the 80 year mark was swiftly approaching. The legal work completed in March 2009. The freeholder’s costs were restricted to a tad over 450 pounds.
Last Christmas we were approach by Dr O Patel , who acquired a garden flat in Undy in January 2010. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical flats in Undy with a long lease were valued about £255,000. The mid-range ground rent payable was £50 billed quarterly. The lease concluded in 2096. Considering the 71 years left we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Last Winter we were called by Mr D Thompson , who purchased a recently refurbished apartment in Undy in November 2012. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable properties in Undy with an extended lease were worth £254,200. The average ground rent payable was £60 invoiced yearly. The lease concluded on 17 January 2076. Given that there were 51 years outstanding we calculated the premium to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of expenses.