The market value of Liskeard 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 escalate significantly once the unexpired lease term is below than eighty years
Leasehold premises in Liskeard with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Retaining our service will provide you better control over the value of your Liskeard leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the freeholder of her first floor flat in Liskeard, Olivia commenced the lease extension process as the 80 year mark was fast approaching. The transaction was finalised in July 2008. The freeholder’s costs were restricted to about 500 GBP.
Mr and Mrs. C Norbert moved into a ground floor apartment in Liskeard in August 2012. We are asked if we could estimate the price could be for a 90 year lease extension. Similar flats in Liskeard with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £55 invoiced annually. The lease termination date was in 2100. Considering the 75 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.
In 2013 we were approached by Mr Leo Rose who, having was assigned a lease of a ground floor flat in Liskeard in February 2006. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparable premises in Liskeard with a long lease were worth £173,800. The average ground rent payable was £65 billed quarterly. The lease termination date was on 3 April 2080. Taking into account 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus costs.