The market value of Leeswood leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
The lawyers that we work with undertake Leeswood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing protracted discussions with the freeholder of her one bedroom flat in Leeswood, Sarah initiated the lease extension process as the 80 year threshold was swiftly approaching. The lease extension was concluded in August 2010. The landlord’s fees were restricted to approximately 550 GBP.
Mr and Mrs. J Davies owned a studio apartment in Leeswood in October 1998. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative homes in Leeswood with an extended lease were in the region of £218,400. The average ground rent payable was £60 invoiced every twelve months. The lease elapsed in 2083. Taking into account 59 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 not including fees.
In 2011 we were e-mailed by Dr Noah López who, having owned a recently refurbished flat in Leeswood in April 2006. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable flats in Leeswood with a long lease were in the region of £205,000. The average amount of ground rent was £50 invoiced every twelve months. The lease elapsed on 16 February 2103. Given that there were 79 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £7,600 and £8,800 not including legals.