The market value of Greenfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the remaining term is below than eighty years
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works | |
| Virgin |
Retaining our service gives you enhanced control over the value of your Greenfield leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Rory, came seriously close to the 80-year mark with the lease on his studio apartment in Greenfield. Having purchased his property 19 years ago, the lease term was of minimal interest. Fortunately, he became aware that he would imminently be paying an escalated premium for a lease extension. Rory arranged for a lease extension at the eleventh hour last April. Rory and the freeholder via the managing agents ultimately agreed on an amount of £6,000 . If he not met the deadline, the premium would have gone up by a minimum £975.
In 2012 we were e-mailed by Mr Jasper Stewart who, having was assigned a lease of a first floor flat in Greenfield in June 2006. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Comparative flats in Greenfield with an extended lease were valued around £227,800. The average amount of ground rent was £45 collected quarterly. The lease elapsed in 2091. Having 65 years left we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.
In 2012 we were approached by Dr Gabriel Clarke who, having owned a purpose-built flat in Greenfield in June 2003. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Identical properties in Greenfield with an extended lease were worth £275,000. The mid-range ground rent payable was £55 billed monthly. The lease ended on 6 February 2102. Taking into account 76 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.