The market value of Welshpool leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the unexpired lease term is below than eighty years
Leasehold residencies in Welshpool with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Welshpool can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 a wealth of experience procuring Welshpool lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Kyle, came perilously near to the eighty-year mark with the lease on his purpose- built flat in Welshpool. In buying his property 19 years previously, the lease term was of no importance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Kyle was able to extend his lease just under the wire in March. Kyle and the freeholder via the management company eventually settled on sum of £6,000 . If the lease had fallen to less than 80 years, the price would have escalated by a minimum £1,150.
In 2011 we were phoned by Mr and Mrs. A Lewis who, having moved into a basement flat in Welshpool in September 2005. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Welshpool with 100 year plus lease were valued about £191,400. The average ground rent payable was £55 billed yearly. The lease terminated in 2079. Having 54 years remaining we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 plus expenses.
In 2013 we were e-mailed by Mr A Mercier who, having owned a newly refurbished flat in Welshpool in April 2003. The question was if we could approximate the premium would likely be for a ninety year lease extension. Comparable homes in Welshpool with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £45 collected monthly. The lease terminated on 13 July 2099. Given that there were 74 years remaining we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.