Bollington residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Bollington,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bollington valuers.
In recent months Leon, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Bollington. In buying his property two decades ago, the length of the lease was of little interest. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Leon was able to extend his lease at the eleventh hour in April. Leon and the freeholder via the managing agents ultimately settled on sum of £5,000 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £900.
Mr and Mrs. I Cook moved into a garden flat in Bollington in July 2006. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparative residencies in Bollington with a long lease were in the region of £181,600. The average ground rent payable was £55 collected every twelve months. The lease finished in 2078. Considering the 52 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus expenses.
Last Christmas we were e-mailed by Mr Leo Collins , who was assigned a lease of a first floor apartment in Bollington in August 2001. We are asked if we could estimate the premium would be to extend the lease by an additional years. Similar flats in Bollington with a long lease were worth £290,000. The average ground rent payable was £45 collected every twelve months. The lease concluded on 4 April 2098. Considering the 72 years remaining we approximated the premium to the landlord for the lease extension to be between £11,400 and £13,200 not including legals.