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 set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Worsley. Clearly, the term of lease left reduces as time goes by. This may slip by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Worsley have the right to extend the lease for a further 90 years under legislation. You should give careful consideration before putting off your Worsley lease extension. Holding off that expense now only increases the price you will ultimately incur to extend your lease
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Worsley,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Worsley valuers.
Noah owned a 2 bedroom apartment in Worsley on the market with a lease of fraction over 59 years remaining. Noah informally contacted his freeholder a well known Bristol-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 at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Noah to exercise his statutory right. Noah obtained expert advice and secured satisfactory deal without resorting to tribunal and sell the property.
Mr Tyler Lefebvre acquired a garden flat in Worsley in March 1995. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Similar homes in Worsley with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 billed annually. The lease finished in 2101. Taking into account 75 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
Mrs Rachael Bennett moved into a ground floor flat in Worsley in June 2010. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparable flats in Worsley with 100 year plus lease were in the region of £250,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease lapsed in 2090. Given that there were 64 years left we calculated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of legals.