The value of Hanham 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 materialy once the remaining term is below than 80 years
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| 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 Hanham,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hanham valuers.
Half a year ago Matthew, came critically close to the eighty-year mark with the lease on his garden apartment in Hanham. Having purchased his flat twenty years previously, the length of the lease was of minimal concern. Thankfully, it dawned on him that he would soon be paying way over the odds for a lease extension. Matthew was able to extend his lease just under the wire in May. Matthew and the freeholder eventually settled on an amount of £5,500 . If he failed to meet the deadline, the price would have escalated by at least £925.
In 2013 we were approached by Mr and Mrs. F Peterson who, having purchased a basement apartment in Hanham in August 2008. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Similar residencies in Hanham with an extended lease were valued around £176,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease elapsed in 2081. Considering the 56 years unexpired we calculated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 plus professional charges.
In 2013 we were e-mailed by Ms Francesca Gray who, having was assigned a lease of a first floor flat in Hanham in November 2003. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar properties in Hanham with an extended lease were valued about £237,600. The mid-range amount of ground rent was £45 invoiced quarterly. The lease terminated in 2092. Given that there were 67 years as a residual term we approximated the premium to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of legals.