Littleborough residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Littleborough,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 in-depth market knowledge and the close ties they enjoy with Littleborough valuers.
Sam owned a 2 bedroom apartment in Littleborough on the market with a lease of a few days over fifty eight years unexpired. Sam informally approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sam to invoke his statutory right. Sam procured expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
Last Winter we were contacted by Ms L King , who moved into a basement apartment in Littleborough in May 2010. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Identical premises in Littleborough with an extended lease were in the region of £183,600. The average amount of ground rent was £65 collected quarterly. The lease ran out on 14 June 2082. Considering the 57 years as a residual term we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.
Mr and Mrs. W Girard completed a garden flat in Littleborough in September 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Comparative properties in Littleborough with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 invoiced per annum. The lease lapsed on 8 January 2093. Having 68 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.