Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Uttoxeter. Clearly, the period of lease left reduces over time. This is often overlooked and only becomes a problem when the residence needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Uttoxeter have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. You should give careful consideration before putting off your Uttoxeter lease extension. Holding off that expense now likely increases the price you will eventually have to pay for a lease extension
Leasehold properties in Uttoxeter with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Uttoxeter can be a difficult process. We recommend you obtain professional help from a conveyancer 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 procuring Uttoxeter lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Oliver, came very close to the eighty-year mark with the lease on his one bedroom apartment in Uttoxeter. Having purchased his home 18 years previously, the lease term was of little concern. by good luck, he noticed he needed to take steps soon on a lease extension. Oliver extended the lease just under the wire in September. Oliver and the landlord who owned the flat above in the end settled on an amount of £5,000 . If the lease had gone to less than eighty years, the premium would have gone up by a minimum £1,150.
In 2012 we were phoned by Mr and Mrs. S Ramírez who, having purchased a basement flat in Uttoxeter in July 2012. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative flats in Uttoxeter with a long lease were worth £255,000. The average amount of ground rent was £50 invoiced per annum. The lease elapsed in 2096. Considering the 71 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.
In 2013 we were called by Dr G Bonnet who, having bought a studio apartment in Uttoxeter in February 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical flats in Uttoxeter with 100 year plus lease were in the region of £254,200. The average amount of ground rent was £60 collected every twelve months. The lease elapsed in 2076. Taking into account 51 years as a residual term we calculated the premium to the landlord to extend the lease to be within £43,700 and £50,600 plus legals.