Appleton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Appleton tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Appleton you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Appleton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Appleton valuers.
Twenty four months ago Alex, came dangerously close to the eighty-year threshold with the lease on his purpose- built flat in Appleton. In buying his property twenty years previously, the length of the lease was of little interest. As luck would have it, he realised he would soon be paying an escalated premium for a lease extension. Alex was able to extend his lease at the eleventh hour last September. Alex and the landlord in the end agreed on a premium of £5,500 . If the lease had slipped lower than 80 years, the price would have become more exhorbitant by a minimum £1,025.
Last year we were approach by Dr Nathan James , who was assigned a lease of a one bedroom apartment in Appleton in February 2010. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparative premises in Appleton with 100 year plus lease were valued about £181,600. The mid-range amount of ground rent was £55 invoiced annually. The lease came to a finish on 20 November 2078. Having 52 years unexpired we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus fees.
In 2014 we were phoned by Mr Matthew Williams who, having completed a one bedroom apartment in Appleton in February 2006. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparable flats in Appleton with a long lease were in the region of £285,000. The average ground rent payable was £45 billed per annum. The lease ran out on 9 March 2098. Taking into account 72 years unexpired we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.