Adderbury residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The lawyers that we work with procure Adderbury 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 lawyer we work with provide it.
Last Summer Finn, came seriously near to the 80-year threshold with the lease on his two bedroom apartment in Adderbury. Having purchased his flat twenty years previously, the unexpired term was of minimal concern. Fortunately, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Finn extended the lease just under the wire last July. Finn and the landlord in the end agreed on the final figure of £5,000 . If he not met the deadline, the sum would have escalated by at least £850.
Mr and Mrs. P Garcia owned a one bedroom flat in Adderbury in October 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Comparative homes in Adderbury with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 billed monthly. The lease ran out in 2098. Having 72 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.
Dr P Mercier purchased a garden apartment in Adderbury in October 2009. The question was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Similar flats in Adderbury with 100 year plus lease were worth £261,600. The average ground rent payable was £60 billed per annum. The lease ended in 2078. Given that there were 52 years as a residual term we estimated the premium to the landlord for the lease extension to be between £39,000 and £45,000 exclusive of expenses.