It’s an underpublicised truth that a Uppingham residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Uppingham property prices.Once your lease nears 85ish years, you need to start thinking about 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 falls under 80 years - otherwise a higher amount will be due. Most leasehold owners in Uppingham will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 75 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 |
The lawyers that we work with procure Uppingham 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 conveyancer we work with provide it.
18 months ago Noah, came critically close to the eighty-year threshold with the lease on his garden flat in Uppingham. In buying his home twenty years ago, the unexpired term was of little interest. As luck would have it, he recognised he needed to take steps soon on a lease extension. Noah arranged for a lease extension just under the wire in January. Noah and the freeholder via the management company subsequently agreed on the final figure of £6,000 . If the lease had slid below eighty years, the sum would have gone up by a minimum £1,000.
Mrs M Watson bought a purpose-built apartment in Uppingham in November 1999. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Uppingham with an extended lease were worth £225,400. The mid-range ground rent payable was £45 invoiced every twelve months. The lease ran out in 2090. Having 64 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including expenses.
In 2014 we were contacted by Mr A López who, having was assigned a lease of a ground floor flat in Uppingham in November 1998. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative properties in Uppingham with an extended lease were worth £270,000. The average ground rent payable was £55 billed quarterly. The lease elapsed in 2101. Taking into account 75 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.