Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in West Molesey. Inevitably, the term of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the property has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in West Molesey have the legal entitlement to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful deliberation before delaying your West Molesey lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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. |
| Halifax | 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. |
The conveyancers that we work with undertake West Molesey 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 conveyancer we work with provide it.
During the course of the last few months Alex, came seriously close to the 80-year mark with the lease on his first floor flat in West Molesey. Having bought his home 19 years previously, the unexpired term was of little relevance. As luck would have it, he recognised he needed to take steps soon on a lease extension. Alex was able to extend his lease at the eleventh hour last March. Alex and the freeholder in the end agreed on an amount of £5,500 . If the lease had slipped lower than 80 years, the figure would have gone up by at least £1,125.
Last year we were approach by Mr G Hill , who owned a one bedroom apartment in West Molesey in May 2007. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Comparable flats in West Molesey with a long lease were valued around £189,000. The average ground rent payable was £55 invoiced every twelve months. The lease finished on 28 June 2079. Given that there were 53 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a West Molesey residence is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case was in relation to 1 flat.