The value of Totterdown 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 escalate significantly once the unexpired lease term is below than eighty years
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Totterdown,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Totterdown valuers.
Noah was the the leasehold proprietor of a high value flat in Totterdown on the market with a lease of just over 72 years outstanding. Noah informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Noah to invoke his statutory right. Noah obtained expert advice and secured an acceptable resolution informally and readily saleable.
Last Spring we were contacted by Mrs Samantha Smith , who moved into a ground floor apartment in Totterdown in October 2003. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable residencies in Totterdown with 100 year plus lease were valued around £166,400. The average ground rent payable was £60 collected yearly. The lease ran out in 2080. Taking into account 54 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of costs.
Mr and Mrs. S François was assigned a lease of a newly refurbished apartment in Totterdown in June 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Identical properties in Totterdown with an extended lease were valued about £227,800. The average ground rent payable was £45 invoiced quarterly. The lease termination date was on 4 November 2091. Taking into account 65 years outstanding we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.