Worksop residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
Leasehold properties in Worksop with over one hundred years outstanding on the lease are often referred to as ‘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 upside in buying the reversionary interest unless savings on ground rent and estate charges warrant 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Worksop can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
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 Worksop lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy discussions with the landlord of her basement flat in Worksop, Katie initiated the lease extension process as the 80 year mark was fast approaching. The lease extension was concluded in October 2009. The landlord’s costs were restricted to slightly above 450 pounds.
In 2012 we were approached by Mr and Mrs. V Simon who, having bought a studio flat in Worksop in June 2007. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparable homes in Worksop with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 billed annually. The lease ended on 19 November 2094. Considering the 69 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
Last Winter we were called by Ms A Moreau , who owned a first floor apartment in Worksop in September 2011. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Comparable flats in Worksop with an extended lease were worth £285,000. The mid-range ground rent payable was £55 billed monthly. The lease expired in 2105. Given that there were 80 years unexpired we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.