On the balance of probabilities if you own a flat in Uttoxeter you actually own a long leasehold interest over your property
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 remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The lawyers that we work with undertake Uttoxeter 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 lawyer we work with provide it.
Hugo was the the leasehold owner of a conversion apartment in Uttoxeter on the market with a lease of just over fifty eight years remaining. Hugo informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Hugo to invoke his statutory right. Hugo procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Ms P Morris moved into a one bedroom apartment in Uttoxeter in February 1998. The question was if we could approximate the price would likely be to extend the lease by 90 years. Comparative flats in Uttoxeter with an extended lease were in the region of £235,200. The average amount of ground rent was £45 billed every twelve months. The lease came to a finish on 5 June 2092. Considering the 66 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
Last month we were phoned by Mr L Ali , who was assigned a lease of a basement apartment in Uttoxeter in November 1996. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable premises in Uttoxeter with an extended lease were worth £275,000. The average amount of ground rent was £55 collected quarterly. The lease came to a finish on 17 May 2103. Given that there were 77 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.