Upton Upon Severn leases on residential properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the existing lease drops lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Upton Upon Severn will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not be entitled. There are prescribed deadlines and procedures to follow once the process has started so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Retaining our service will provide you better control over the value of your Upton Upon Severn leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Jayden, started to get close to the 80-year mark with the lease on his one bedroom apartment in Upton Upon Severn. Having purchased his home twenty years ago, the unexpired term was of little importance. Fortunately, he realised he needed to take action soon on Extending the lease. Jayden arranged for a lease extension just ahead of time in September. Jayden and the freeholder in the end settled on sum of £5,500 . If the lease had slid to less than eighty years, the price would have become more exhorbitant by a minimum £1,000.
In 2010 we were approached by Ms S Smith who, having acquired a one bedroom flat in Upton Upon Severn in February 2001. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Comparable flats in Upton Upon Severn with 100 year plus lease were valued about £216,000. The mid-range ground rent payable was £60 billed quarterly. The lease ran out on 12 November 2083. Given that there were 58 years remaining we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus professional charges.
In 2011 we were phoned by Ms Hannah Rivera who, having moved into a one bedroom apartment in Upton Upon Severn in September 1996. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative homes in Upton Upon Severn with a long lease were in the region of £200,000. The mid-range ground rent payable was £50 billed monthly. The lease terminated on 20 October 2103. Given that there were 78 years outstanding we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.