Uppingham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Uppingham tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Uppingham you should investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Uppingham leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is put in place without delay
Leasehold premises in Uppingham with over 100 years outstanding 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Uppingham can be a difficult process. We recommend you get guidance from a lawyer 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 in-depth market knowledge dealing with Uppingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kai was the the leasehold proprietor of a high value apartment in Uppingham on the market with a lease of fraction over 72 years remaining. Kai on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kai to invoke his statutory right. Kai obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
In 2014 we were contacted by Mrs Sophie Vincent who, having owned a ground floor flat in Uppingham in February 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Uppingham with a long lease were worth £261,600. The average ground rent payable was £60 billed per annum. The lease finished in 2078. Considering the 52 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 not including costs.
In 2014 we were e-mailed by Mrs Lydia Young who, having owned a first floor flat in Uppingham in March 2000. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Similar flats in Uppingham with 100 year plus lease were in the region of £218,000. The mid-range amount of ground rent was £45 collected yearly. The lease finished on 27 September 2089. Considering the 63 years as a residual term we calculated the premium to the landlord to extend the lease to be within £17,100 and £19,800 not including costs.