The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Water Orton can extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Water Orton lease extension. Putting off that expense now simply escalates the price you will ultimately have to pay for a lease extension.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| 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 Water Orton can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor 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 Water Orton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Samuel owned a studio flat in Water Orton being marketed with a lease of a few days over sixty years unexpired. Samuel informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Samuel to invoke his statutory right. Samuel obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Dr G Clark took over the lease of a first floor apartment in Water Orton in April 2012. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable residencies in Water Orton with an extended lease were valued around £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease came to a finish in 2104. Having 79 years outstanding we approximated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 not including fees.
In 2012 we were e-mailed by Mrs Alisha Clark who, having moved into a first floor flat in Water Orton in January 1998. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Similar premises in Water Orton with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ran out in 2093. Having 68 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.